Cash flows

This topic has 1 reply, 2 voices, and was last updated 8 years ago by P2-D2.

Viewing 2 posts - 1 through 2 (of 2 total)

Author

Posts
May 28, 2018 at 6:59 pm #454451
herocomesalong
Member
- Topics: 65
- Replies: 36
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?
May 28, 2018 at 9:02 pm #454498
P2-D2
Keymaster
- Topics: 4
- Replies: 7235
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
Author

Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.