I'm creating a cash flow statement, I have these accounts that I'm unsure of...?
Accumulated depreciation...I have a negative change in this account from the past year to this year (-70 to -85) how does this affect cash flow (+ or -)? Deferred income taxes (63 to 71)...is this a + or a -? Accrued liabilities (80 to 70)...+ or -?
2007-07-22 23:48:38 · 3 answers · asked by happy 2 in Business & Finance ➔ Other - Business & Finance
Accumulated depreciation doesn't figure in a cash flow statement. You add the depn charge for the yr to the opening line which is profit before tax. Deferred income taxes also don't figure in any cash flow statement, but the actual tax paid is a cash outflow before arriving at cash generated from op'g activities.
Increase/decrease in current liabilities (other than income taxes payable) is accounted for under changes in working capital. Click on the link below and take a look at Appendix A, right towards the end.
2007-07-24 04:47:55 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
Here's your answers.
Accumulated depreciation...I have a negative change in this account from the past year to this year (-70 to -85) how does this affect cash flow ( +)? Deferred income taxes (63 to 71)...is this ( +)? Accrued liabilities (80 to 70) (-)?
2007-07-22 23:55:33 · answer #2 · answered by Anonymous · 0⤊ 2⤋
It's a use of cash.
2016-05-20 23:49:39 · answer #3 · answered by linda 3 · 0⤊ 0⤋