Why does depreciation get added back to net profits to calculate cash flow?
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depreciation is added back to cashflow because in depreciation their is no cash out flow from charging depreciation.
lets take a example that u have jaguar and every u charge a dep of let say 100000 then tell me buddy did u pay 1ooooofrom ur pocket every year no na thats why we r add back dep in cash flow
lets take a example that u have jaguar and every u charge a dep of let say 100000 then tell me buddy did u pay 1ooooofrom ur pocket every year no na thats why we r add back dep in cash flow
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