Question: How does cash from operating activities differ from net earnings
How does cash from operating activities differ from net earnings?
Answer to relevant QuestionsWhen the operating activities section starts with net earnings, why is depreciation added to derive cash flow from operating activities? Is depreciation a source of cash? If a dividend payment of $ 50,000 to shareholders attracts $ 5,000 of tax for the company, what amount is shown as cash paid for dividends on the SCF?What is the alternative to the proprietary concept?What are the three categories of cash flows to be reported on the SCF?What estimates are required to use the percentage- of- completion method?
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