Describe the meaning of net income plus depreciation, Financial Management

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The so-called "cash flow" (net income plus depreciation) is a flow of cash, but is it a flow to the shareholders or to the company?

Suppose that net income plus depreciation is a flow is an enormous mistake.

It would be surprising if someone took the sum of two parameters whose meaning is doubtful and whose magnitude is discretional and known as it a "cash flow."

 


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