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Cash flows

SStephere8y ago
Hello tutor, For cash flows that do not get classified into any of the activities (e.g. research expense), do we need to add them back to net profits when determining cash flows from operations?
P2-D2P2-D2Tutor8y ago#1
Hi, No we don't as it is a cash expense and so will reduce cash and also profits. We only need to adjust items where there is a profit impact but no cash impact. Thanks
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