Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 25GI
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Question
How can we Share Cash Flow from Operations?
Expert Solution
Step 1
Cash Flow from Operations is the cash flows from principal revenue generating activities of an organization. In other words, these cash flows pertain to core business processes of an organization. It is also used as a measurement of an origination's profitability as stakeholders and potential shareholders have keen interest in knowing that how much the company is earning from its primary activities
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