Question
1.In the Operating Cash Flow section of the Cash Flow Statement, why do we add back depreciation? 2.In the Operating Cash Flow section of the
1.In the Operating Cash Flow section of the Cash Flow Statement, why do we add back depreciation?
2.In the Operating Cash Flow section of the Cash Flow Statement, why do we subtract changes in Working Capital?
3.In which of the three sections of the Cash Flow Statement is CapEx shown? And is it shown as an inflow or outflow of cash?
4.Assume that Weatherhead Bakery issues $1M in new shares. In which of the three sections of the Cash Flow Statement will this line-item show up? And will it show as an inflow or outflow or money?
5.Explain the relationship between depreciation in the three financial statements. In any given year, how does depreciation flow through the three financial statements?
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