Statement of Cash Flow

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January 29, 2016 at 5:35 pm #298479
Abror
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Good evening Mr John..
Your lecture on Cash Flows , example 2….
Why did you ignore bad debts write off….
Thanks..
January 29, 2016 at 8:45 pm #298490
John Moffat
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A write off of a bad debt means that we have not received the cash. Since this is a cash flow statement there is therefore no need to adjust for it.
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