Explain why depreciation expense is treated as a source


Question: 1. Explain why depreciation expense is treated as a source inflow of working capital.

2. What is a statement of source inflows and use outflows of working capital?

3. If a business operation has a current ratio of 1.25:1, what does this mean relative to working capital?

4. What are the primary items by category analyzed in the SCF, investing section?

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Engineering Mathematics: Explain why depreciation expense is treated as a source
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