Why accrual revenue minus cost of goods sold

Reference no: EM131487022

Question: 1. Which of the following two measures gives a better indication of the value added from selling inventory:

(a) cash receive d from customers minus cash paid for inventory, or

(b) accrual revenue minus cost of goods sold? Why?

2. Interest payments should not be part of cash flow from operations. Why?

Reference no: EM131487022

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