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If a company reports an add back on the statement of cash flows for stock based compensation expense of $5 million, would this result in
If a company reports an add back on the statement of cash flows for stock based compensation expense of $5 million, would this result in increasing net cash flow earnings? This expense was accounted for in SG&A on the income statement. The statement of cash flows indicates an add back of $5 million for the stock based compensation. Could a company use this strategy to increase net operating cash flows? Please explain why
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