Let's say that we're creating projections for a company, and in its historical filings Depreciation & Amortization and Stock-Based Compensation are NOT listed as separate items on its income statement. Which income statement line items might INCLUDE these figures, and how should we project these items in future years?
A.If they're not listed on the income statement, the company does not have significant expenses in either category so we don't need to do anything.
B.They almost always show up exclusively in COGS; you should break them out as separate line items and project them separately going forward.
C.They may show up in either operating expenses or COGS, or in both; it's better to break them out as separate line items by modifying the historical statements and then project them separately going forward.
D.They always show up exclusively in operating expenses; you only need them for the cash flow statement so you don't need to break them out separately in income statement projections.
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