What is the difference between D/A on an Inc Statement and on a CF Statement
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(Senior Baboon, 199
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on 6/19/12 at 8:31pm
What is the difference between D/A on an Inc Statement and on a CF Statement





nothing - they should be the
nothing - they should be the same, if they are different consider reading the footnotes.
Depreciation and Amortization
Depreciation and Amortization is a non-cash expense so it should appear as a plain expense on a statement of operations and as an add-back to net income to arrive at cash flows from operations.
I can't think, off the top of my head, of a single instance where they'd be different amounts...
read footnotes. likely some
read footnotes. likely some amount of d or a baked into another p&l line item. is the cash flow statement number higher?
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sm
Always use SCF D&A in your
Always use SCF D&A in your model...like speed said, maybe not all the D&A will show up in operating expenses if some of it is embedded into COGS or something
I'm a professor at an ivy
I'm a professor at an ivy teaching FSA and financial modeling. Companies allocate D&A to a number of line items, including CGS and SGA. Sometimes you can find the detail in the notes, but sometimes you can't. The D&A amount from the SCF is the one to use in developing your model. If you have other questions let me know.
Professor Shortie: I'm a
I'm a professor at an ivy teaching FSA and financial modeling. Companies allocate D&A to a number of line items, including CGS and SGA. Sometimes you can find the detail in the notes, but sometimes you can't. The D&A amount from the SCF is the one to use in developing your model. If you have other questions let me know.
This. Can be in cogs, or any op ex. Rd, s and m, g and a.
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