easy · Corporate Credit Analysis fsa

If a company recognizes an impairment charge of $100 million on its goodwill, how does this specifically affect the bridge from Net Income to Cash Flow from Operations?

1. The $100 million is added back to Net Income as a non-cash charge
2. The $100 million is recorded as a use of cash in the working capital section
3. The $100 million is subtracted from Net Income because it represents a loss
4. The $100 million is ignored because goodwill has no cash flow content

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