Explain in more detail how the process aids the accounts

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Reference no: EM131988318

Problem

Sustainable income-the most likely level of income to be obtained by a company in the future. Sustainable income differs from actual net income by the amount of unusual revenues, expenses, gains, and losses included in the current year's income. Analysts are interested in sustainable income because it helps them derive an estimate of future earnings without the "noise" of unusual items.(kimmel,06 sustainable cash flow is recurring cash and is derived from a company's profitable operations, which is a renewable source. Positive operating cash flow can be generated in the near term and on occasion over extended periods, even in the absence of profitable operations.

Question Explain in more detail how this process aids the accounts and managers alike... provide realworld examples and provide a refreance in APA format.

Reference no: EM131988318

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