Quick dumb question: Can you explain how depreciation
of furniture and
equipment positively impacts the organizations cash position? Related,
perhaps, to an overestimate on the impact of depreciation as an expense?
I was a little confused by that. I think all the signs are the
opposite of what you would expect. It's not laid out as:
Cash at beginning of period
-Cash spent
+Cash received
=Cash at end of period
It's starting with net income and reconciling that with cash flow.
Depreciation is positive because it has a negative affect on income
but no affect on cash flow (it doesn't involve cash), so has to be
added back on to get from net income to net cash flow.