Can anyone please summarize the effects on CFO, CFF and CFI for the following. 1) Capitalization Vs expensining 2) Straight line Vs Accelerated depreciation 3) Capital Vs Operating lease 4) LIFO Vs FIFO 5) Deferred Taxes Thanks for your help.
- Expensing > reduces CFO, Capitalise > reduces CFI 2) Depreciation > tax? But you can use different depreciation methods under F.statements and Tax returns 3) Capital > Interest portion reduces CFO, Principal reduces CFF Operating > entire lease payment reduces CFO 4) LIFO > lower taxes, higher CFO than FIFO