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VSParagon t1_ixjp7gd wrote

It's been a while since I took an accounting class but doesn't "spend" imply cash flows while stuff like depreciation is strictly income statement stuff that doesn't really reflect whether a company is "making money"?

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MarcusP2 t1_ixjzpbp wrote

Depreciation is the loss of value of assets that will eventually need to be replaced. So it might not affect immediate cash flow but if you don't manage it you will have potential large expenditure later, so it is a loss.

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TooRedditFamous t1_ixra2i0 wrote

By spend they just mean expenses. So this is a very basic P+L of sorts, spitting out the operating loss at the bottom

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