CFA CFA Level 1 Cash flow from operation

Cash flow from operation

  • This topic has 1 reply, 2 voices, and was last updated Jul-18 by MJB91.
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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:

       

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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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