I am in process of analyzing a company that has recorded restructuring charges in Year...
60.1K
Verified Solution
Link Copied!
Question
Accounting
I am in process of analyzing a company that has recorded restructuring charges in Year and of operations as part of their income statement to the tune of $ million and $ million. Although, for the purpose of analysis, I would like to not account for these onetime expenses within the income statement and get a clearer operational understanding and conduct ratio analysis. To remove the restructuring charges from the income statement, what sort of changes would I need to make in my cash flow statement and balance sheet?
Example: If I remove $ million as restructuring charges from income statement, I would have an increased net income which would impact by cashflow from operating activities. This would inturn result into changes in cash position on balance sheet as well. Although, there is also a tax component, so how would that play out in a tax environment. Would it be deferred? Could you help explain the total journey of restructuring charges would look with their entry's mentioned in all statements.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
