Cash flow to account for all income earned

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Question: The cash flow statement is prepared using the direct method showing their cash flows result from operating, investing, and financing. One of the items of their statement of cash flow was Foreign currency adjustments. The foreign currency translation show the profit or losses from the fluctuations caused by varying exchange rate when making purchases or selling goods. Coca Cola reported a foreign currency adjustment of $86,000,000 with a similar amount in previous years. Because of their expansive market outside of the U.S the profit from exchanging currency is added to the cash flow to account for all income earned.

Reference no: EM133390820

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