By Admin on Feb 16, 2010 in Other - Business & Finance
In a cash flow statement, why does depreciation and amortisation count as a cash inflow?
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Hey.
It does not.
It is because it is recognized in Income Statement as an expense.
However, because it is not real cash outflow, therefore in your Cashflow statement (which you start with Net Income After Tax), you add back depreciation and amortization.
Hope it helps.
yihan84 | Feb 17, 2010 | Reply