I agree with brafique. An increase in asset is a decrease of cash.
Anybody else have any thoughts on this insane question?
Lets look at this logically with a business view point Net sales - 50,000 Sales is in operation right!!! > Cash expenses: 4250 Cash exp is an operation right > Cash Inputs: 17,000 Cash inputs, (could be anything like sale of equipment or sale of stock shares) but not operating > Cash Taxes: 7,000 Tax is part of busisness operations > Increase in receivables: 500 Increased receivalbe mean that you sold something and did not get the cash for it at that time > Depreciation Expense: 1,000 Operation expense, but there is no hard cash involved so 50000-4250-17000-7000-500+1000=22250
Thanks pista…I think this is where the confusion is… had the cash inputs be termed “other cash inputs” …it would have been much clearer… in terms of not confusing with “overall cash inputs”.
guys correct me CFO: inflow: 50000-500= 49500 outflow: 4250+17000+7000= 28250 net change: 49500-28250= 21250
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