The part that is confusing me in this example is that for Cash Flow from Operating Activities (After adjustment) - shouldn't the reduction in taxes be factored in as part of computing the adjusted CFO number? I note that in the example the CFI of $6000 is simply moved over to CFO bucket (which makes sense) but then as the expenses increase there will be less taxes to pay so the change in amount of taxes paid should also be factored in for CFO. Correct? The same applies to $2000 amortization - which as it is a cashless expense for the CFO calculation should be factored also correct?

JHH Software Example – CFA Level 1 – Long Lived Assets Reading (#22)

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