Question
Just need short answer DQ5-7 Explain why, under the indirect method, depreciation is added to the net income to calculate the cash flow from operations.
Just need short answer
DQ5-7Explain why, under the indirect method, depreciation is added to the net income to calculate the cash flow from operations. Is depreciation a source of cash, as this treatment seems to suggest?
DQ5-10Explain how the net cash flow from financing activities could be a negative amount.
DQ5-12Explain what it means if the net cash flow from investing activities is a positive amount.
DQ5-16Explain why it is common for companies to have positive cash flows from operating activities and negative cash flows from investing activities.
DQ5-23Explain what cash flow pattern would normally be expected in the first year of a new company.
DQ5-27Explain why a company's board of directors may want to determine the CEO's bonus based on cash flows from operating activities rather than based on net income.
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