When calculating the Indirect Method:
starting with Net Income +or- Realized Gain/Loss( from sale of an asset) etc… ( what about the unrealized gain/losses, should we add/substract them, if any? )
When calculating the Indirect Method:
starting with Net Income +or- Realized Gain/Loss( from sale of an asset) etc… ( what about the unrealized gain/losses, should we add/substract them, if any? )
You remove the effect of any gain or loss, realized or unrealized. Gains and losses are not part of operations.
got it ! thanks.
wasn’t sure about the “unrealized” Gain/loss thing. i get it now since unrealized Gain/loss are reported on the Income statement, they should be adjusted in the CFO.
Yup: you got it!