why is depreciation sometimes listed in sources of funds?

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
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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
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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.
wrote

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

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or its time to check the dosage......
" Just a wild guess but maybe you haven't been taking your meds for past several days "

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wrote:

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.
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On Wed, 14 May 2008 20:52:31 -0700 (PDT), Girish wrote:

Yup, paper debits and credits must be eliminated until you are left with actual cash flow.
--
Don't worry about life; you're not going to survive it anyway.

snipped-for-privacy@gmail.com
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Yep...No one gets out of here alive... ()
" Don't worry about life; you're not going to survive it anyway "

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