why is depreciation sometimes listed in sources of funds?

"Girish" wrote

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.

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.

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

Ohkay! Got it. Glad I asked though. So just as you are adding back account payables, you must also subtract account recievables in the cash flow statement. Right.

or its time to check the dosage......

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

Yup, paper debits and credits must be eliminated until you are left with actual cash flow.

Yep...No one gets out of here alive... ‹(•¿•)›

" Don't worry about life; you're not going to survive it anyway "