Cash Flow 2 Operating Activites
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very nice
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Thnak you Mam, you are great.................
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@MBAGabe if your house is struck by lightning, devaluing it $10k, that doesn't affect net income at all
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what about the difference between the indirect and direct methods??
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Thank you for making Cash Flows so simplified!!!!
Student from Canada
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great! where is she?
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Where have you been in all my university life!?!
Good job!
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I sooo lOvE it... Excellent work..!!!
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Very helpful.. I feel more confident heading into my test tomorrow. Thank YOU!!
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Thanx a lot... tht u made my day!!!!
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You add losses and subtract gains, because you start from "Net Income" on the statement of cash flows. Losses and gains are factored into Net Income, but they don't affect cash. Example: You earned $50k this year. Also, your house is struck by lightning, devaluing it $10k. Your "net income" this year then is $40k, because you lost $10k worth of an asset. However, if you haven't yet fixed the house, you still have $50k in cash. Add your 10k loss to your 40k net income to get your 50k cash.
MBAGabe 3 years ago 18
i love this woman! this is so helpful esp. with finals coming up :)
jessixbaby 2 years ago 13