I have a question on accounting for NOLs and the impact on the CF statement.
Correct me if I'm wrong on this: If I apply acarry forward this year to reduce my taxable income (and thus my taxes), my net income will increase by .40 x NOL balance.
On my cash flow statement, my cash has already increased by this amount since net income flows through, but do I adjust for the change in the deferred tax asset account when I'm adjusting for changes in working capital? If so, it almost seems like double-counting (increase from cash due to 1. net income increase and 2. decrease in DTA).
Basically, I'm trying to figure out if applying a NOL creates an additional cash event due to the change in deferred tax assets.
Thanks in advance for the help!