Why is change of goodwill not no added in Cashflow from investing activities.?
Solution:
Cash flow from investing activities consists of investments or cash flows made by the company for future revenue earnings or investments made in fixed assets. As goodwill does not fall in such category, it is not taken under cash flow under investing activities.
Cash flow from investing activities consists of investments or cash flows made by the company for future revenue earnings or investments made in fixed assets. As goodwill does not fall in such category, it is not taken under cash flow under investing activities.