A: Initially, there is no impact (income statement); cash goes down, while PP&E goes up (balance sheet), and the purchase of PP&E is a cash outflow (cash flow statement)
Over the life of the asset: depreciation reduces net income (income statement); PP&E goes down by depreciation, while retained earnings go down (balance sheet); and depreciation is added back (because it is a non-cash expense that reduced net income) in the cash from operations section (cash flow statement).
Hi IIN Financials i am a ICWA fresher student from Mumbai.i want to know regarding Merger & acquisition.
ReplyDeleteis merger & acquisition also can effect above three financial reports?
Yes of course my dear website viewer.Here acquisition is nothing but PPE.Thanks for visiting my website.
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