Hi just a quick question, how come in coming up with the cash flow from operation, the answer is 100? According to the solution, the cash flow is derived from Net Income - Profit on sale of building + depreciation. Why are the taxes paid and interest paid not included as per the following table from Schweser:

Hi Wannabe1988 - The interest and dividends will already have been taken into account within the net income. You won't need to readjust for them. Does that make sense?

A CFA Level 1 Discussion About Cash Flow From Operation

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This topic has 1 reply, 2 voices, and was last updated Jul-188:41 am by MJB91.

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- wannabe1988
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  09 Jul 2018 at 6:23 pm
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  Hi just a quick question, how come in coming up with the cash flow from operation, the answer is 100? According to the solution, the cash flow is derived from Net Income – Profit on sale of building + depreciation. Why are the taxes paid and interest paid not included as per the following table from Schweser:
- MJB91
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  - CFA Level 2
  16 Jul 2018 at 8:41 am
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  Hi Wannabe1988 – The interest and dividends will already have been taken into account within the net income. You won’t need to readjust for them. Does that make sense?
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