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Hi,
For PPE scrapped which has a book value of $3.125m and had originally cost $7,5m. These fixtures had no scrap value.
How do you treat this on the cashflow? Do you need to add back $3.125m on the operating activities and removed from the Investing activities section?
According to my point of view:
Did you receive cash? the answer is no
So just add back 3.125 like depreciation. (non cash activities)
Investing Activities : Any movement of cash is there? the answer is No,
so no need to do anything in investing activities.I hope its clear.
Do update me if I am wrong. Because I am also a student
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