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Subject Author Date
why is depreciation sometimes listed in sources of funds? Girish 05-14-2008
Posted by Girish on May 14, 2008, 8:54 am
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 In the cash flow statement of a company, I am seeing depreciation
being ADDED and clubbed with the sources of funds(net income, debt
incurred etc). Is this correct? Why?

thanks!
Girish


Posted by Paul Thomas, CPA on May 14, 2008, 9:15 am
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> In the cash flow statement of a company, I am seeing depreciation
> being ADDED and clubbed with the sources of funds(net income, debt
> incurred etc). Is this correct? Why?




Depreciation is an expense deducted from net income, but it isn't a cash
outlay.

The cash flow statement tries to reconcile net income to the change in cash.
So you add back expenses where cash isn't going out the door - depreciation,
increases in payables, etc.






--
Paul A. Thomas, CPA
Athens, Georgia








Posted by Kurt Brown on May 14, 2008, 12:22 pm
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Thanks Thomas, I was going to be a CPA and went to work for the FDIC. Never
again. My life is in ruins, I was almost killed, forcibly injected, and my
wife was harassed at her work and I am divorced, and now, I welcome global
war or a shoot load or ard f-dic cash.

Kurt Brown -- Saint Ram Bone, former FDIC bank examiner and survivor, who
used the website Mobile Audit Club to publicize that I was attacked,
survived, and the federal government did not asssist me. They killed a San
Francisco FDIC regional director and put in a money launderer. He
terminated me and D.C. crushed me.
>
>> In the cash flow statement of a company, I am seeing depreciation
>> being ADDED and clubbed with the sources of funds(net income, debt
>> incurred etc). Is this correct? Why?
>
>
>
>
> Depreciation is an expense deducted from net income, but it isn't a cash
> outlay.
>
> The cash flow statement tries to reconcile net income to the change in
> cash. So you add back expenses where cash isn't going out the door -
> depreciation, increases in payables, etc.
>
>
>
>
>
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia
>
>
>
>
>
>
>



Posted by John on May 14, 2008, 1:09 pm
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> Thanks Thomas, I was going to be a CPA and went to work for the FDIC. Never
> again. My life is in ruins, I was almost killed, forcibly injected, and my
> wife was harassed at her work and I am divorced, and now, I welcome global
> war or a shoot load or ard f-dic cash.
>
> Kurt Brown -- Saint Ram Bone, former FDIC bank examiner and survivor, who
> used the website Mobile Audit Club to publicize that I was attacked,
> survived, and the federal government did not asssist me. They killed a San
> Francisco FDIC regional director and put in a money launderer. He
> terminated me and D.C. crushed me.

Just a wild guess but maybe you haven't been taking your meds for past
several days
















>
> >> In the cash flow statement of a company, I am seeing depreciation
> >> being ADDED and clubbed with the sources of funds(net income, debt
> >> incurred etc). Is this correct? Why?
>
> > Depreciation is an expense deducted from net income, but it isn't a cash
> > outlay.
>
> > The cash flow statement tries to reconcile net income to the change in
> > cash. So you add back expenses where cash isn't going out the door -
> > depreciation, increases in payables, etc.
>


Posted by ~^ beancounter ~^ on May 15, 2008, 12:17 pm
Please log in for more thread options
or its time to check the dosage......


" Just a wild guess but maybe you haven't been taking your meds for
past
several days "





>
> > Thanks Thomas, I was going to be a CPA and went to work for the FDIC. =
=A0Never
> > again. =A0My life is in ruins, I was almost killed, forcibly injected, a=
nd my
> > wife was harassed at her work and I am divorced, and now, I welcome glob=
al
> > war or a shoot load or ard f-dic cash.
>
> > Kurt Brown -- Saint Ram Bone, former FDIC bank examiner and survivor, wh=
o
> > used the website Mobile Audit Club to publicize that I was attacked,
> > survived, and the federal government did not asssist me. =A0They killed =
a San
> > Francisco FDIC regional director and put in a money launderer. =A0He
> > terminated me and D.C. crushed me.
>
> Just a wild guess but maybe you haven't been taking your meds for past
> several days
>
>
>
>
>
> > >> In the cash flow statement of a company, I am seeing depreciation
> > >> being ADDED and clubbed with the sources of funds(net income, debt
> > >> incurred etc). Is this correct? Why?
>
> > > Depreciation is an expense deducted from net income, but it isn't a ca=
sh
> > > outlay.
>
> > > The cash flow statement tries to reconcile net income to the change in=

> > > cash. So you add back expenses where cash isn't going out the door -
> > > depreciation, increases in payables, etc.- Hide quoted text -
>
> - Show quoted text -


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