Adjusting cash flow due to company's contribution and total pension cost
Can someone explain how this will be classified in CFO and CFF:
Contribution of $500 and Total Pension Cost $600.
Thus, $100 x (1-0.3) = $70 after tax
Underfunded by $70 so will this be considered as borrowing? Thus CFF (outflow) will decrease by $70 and and CFO (inflow) will decrease by $70?
What if CFF had a net inflow? Then would the inflow have increased by $70?
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