In FRA page 294, the formula numerator for cash flow accrual is (NI - CFO - CFI)
On page 293, they add all 3 items.
Why are all 3 items added?
Is “profit from continuing operations” not “net income”?
Correct.
If you look well, the formula is correctly applied. CFO has positive sign since it is a inflow of cash, so in the formula it is negative (-). CFI is an outflow of cash because it’s the money invested in assets and other items, so in the formula its sign is reversed and put as positive (+). The sum gives you the cash flow accrual.
Profit from continuing operations is the same as net income from the Income Statement.