________ is(are)added back to the pro forma sources and applications of funds statement because it does not represent and out-of-pocket expense.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense and therefore does not require an out-of-pocket expense. It is added back to the pro forma sources and applications of funds statement to accurately reflect the cash flows of the business. Inventory, dividends, and equipment purchases are actual cash outflows and should not be added back.

________ Is(are)added Back to the Pro Forma Sources and Applications