Question: Depreciation and amortization are added back in computing operating cash flows because: It is required under SEC guidelines. b. They represent outflows that record the

Depreciation and amortization are added back in computing operating cash flows

Depreciation and amortization are added back in computing operating cash flows because: It is required under SEC guidelines. b. They represent outflows that record the wear and tear on assets over their estimated useful lives, as per accounting principles. They represent variable costs of production. Excess cash has been deducted in the income statement

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