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Explain the cash flow statement with pipeline theory ..????
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Answer Posted / pramod gavali
CASH FLOW not includes Financial Expenses.
According to pipeline theory, the investment firm passes
income directly to the investors, who are then taxed as
individuals. This means that investors are taxed once on the
income, whereas in regular companies investors are taxed
twice: when the company reports income (at the corporate
level) and when dividends are received (as individual
income). Pipeline theory would apply to mutual fund
companies and Real Estate Investment Trusts (REITs).
and CASH FLOW not includes Financial Expenses.
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