When converting accounting profits to cash flows, we broadly deal with depreciation and working capital as follows: Depreciation Working capital A) add add at the start of the project, deduct at the end. B) deduct add at the start of the project, deduct at the end. C) add deduct at the start of the project, add at the end. D) deduct deduct at the start of the project, add at the end.
1) When converting accounting profits to cash flows, we broadly deal with
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cash flow Statement:
An organization's total cash inflows from current activities and outside investment sources are detailed in a cash flow statement. A cash flow statement's goal is to give a thorough account of what happened to a company's cash over a given time period, also referred to as the accounting period.
There are two ways to calculate cash flow.
- Direct Cash Flow Statement Method
- Indirect Cash Flow Statement Method
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