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Statement of Cash FLow

AArahn5y ago
Hi John. Why do you adjust for Interest expense by adding it and then remove it in the Cash flows from Operating Activities ?
John MoffatJohn MoffatTutor5y ago#1
We add the expense that was charged in the SOPL, and then subtract the interest that was actually paid. The two might not be the same because there could be some of the interest still owing at the end of the year.
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