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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Example 1 Blair Ltd page 71 cash flows
Hi Sir,
i was somewhat confused why we don’t add back the entire admin exp of 199 when calculating cash from operating activities, we only seem to add back depreciation of 40k, which leave 159k unaccounted for.
Can you please explain how the rest of the admin exp is accounted for in statement of cash flows?
Regards
We add back the depreciation because it is not a cash flow. The rest of the expenses must be cash flows otherwise we would have been told if not.
Have you not watched the lecture working through this example? (There is no point in using the notes without watching the lectures – they are lecture notes and it is in the lectures that I explain and expand on the notes. If you are not watching the lectures for any reason then you must buy a Study Text from one of the ACCA approved publishers and study from there.)