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  • GE's Plastics Division Sale To Fund Buybacks, Restructuring [View article]
    "an expected after-tax gain of the same amount will be used to fund restructuring"

    My understanding of accounting is that an after-tax gain on sale is an accounting entry to recognize the fact that the asset was sold for more than its carrying value, and NOT an increase in cash. So, how can this non-existent cash fund anything?

    Unless, the analyst means that $1.5B of proceeds from the sale are used to fund a restructuring.
    May 22 10:07 am |Rating: 0 0 |Link to Comment
  • GE's Plastics Division Sale To Fund Buybacks, Restructuring [View article]
    "an expected after-tax gain of the same amount will be used to fund restructuring"

    My understanding of accounting is that an after-tax gain is an accounting entry to recognize the fact that the asset was sold for more than its carrying value, and NOT an increase in cash. So, how can this non-existent cash fund anything?

    Unless, the analyst means that $1.5B of proceeds from the sale are used to fund a restructuring.
    May 22 10:06 am |Rating: 0 0 |Link to Comment
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