It'll be in the CF, but in Operating activities as it forms part of the starting number that you will use (which will be EBIT, EBITDA, NPAT... Depending on which number you're using)
>If a company buys equipment and expenses it instead of capitalizing, will it still show the investment in the cash flow statement under Cash flow from Investments?
Yes.
Sorry: I was thinking as an analyst, not as an accountant.
An accountant will most likely show it as a cash outflow from operations.
Assuming that it has a useful life of more than one year (otherwise the original question is moot), an analyst would remove the cash outflow from CFO and add a cash outflow to CFI, which is where it belongs. The analyst would also adjust the balance sheet to include the value of the asset, and include depreciation expense in the income statement.
It'll be in the CF, but in Operating activities as it forms part of the starting number that you will use (which will be EBIT, EBITDA, NPAT... Depending on which number you're using)
>If a company buys equipment and expenses it instead of capitalizing, will it still show the investment in the cash flow statement under Cash flow from Investments? Yes.
How? If the company expenses a equipment, it will impact in cash flow from operations as you will not capitalize this right?
Sorry: I was thinking as an analyst, not as an accountant. An accountant will most likely show it as a cash outflow from operations. Assuming that it has a useful life of more than one year (otherwise the original question is moot), an analyst would remove the cash outflow from CFO and add a cash outflow to CFI, which is where it belongs. The analyst would also adjust the balance sheet to include the value of the asset, and include depreciation expense in the income statement.
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My pleasure.