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Statement of Cash FLow

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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August 24, 2020 at 6:04 pm #581799
arahnsathananthan
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Just a quick question John. For the loss on disposal, why is it added on ? I know if there was a profit, it is removed as it not received.
August 25, 2020 at 6:49 am #581836
John Moffat
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The loss will have reduced the profit. However there is no cash outflow and so we add it back to the profit (just as we add back depreciation).
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