Cash Flow Statements

Why do we add back depreciation and interest income / expense in cash flow statements?

Why do we add back depreciation and interest income / expense in cash flow statements?

By Hasaan Fazal on February 18, 2011

i-ask! | Have a question? Ask Tutor! In the cash flow statements while preparing it under indirect method book says that we add back the depreciation and the interest expense and also deduct the investment income. But why? Why do we reverse all these items in income statement? Can you please explain this to me? [...]

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