How is Depreciation treated in income statement and balance sheet



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Hi again.
Is there a difference between depreciation written in the income statement under the operating expenses and the depreciation reduced from the gross block in the balance sheet? If no, won't this lead to a problem while calculating the Free Cash Flow?

1 Answer(s)


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Ishan - Assuming that the income statement and the balance sheet are for the same periods, the depreciation will be the same.

Why do you think this will create a problem for FCF calculation ? I don't think it does.