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Hi Everyone,
I have a question for free cash flow. Normally we need to add capital expenditure from cash from operations to calculate free cash flow. But do we also add proceeds from sale of ppe for free cash flow, or only purchases?
Thanks
No accounting standard has a formula, so there is little consistency. The company (and the exam)will disclose the basis of calculation.
Personally I would show disposal proceeds as an inflow.
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