Can anyone tell me why the equipment purchase is not an outflow? You’re spending cash right? And it’s overall cash flow, not CFO as I read it. Thanks!
I had the same questions. Also, I don’t really understand why increase in accounts receivable or increase in inventories are not considered, because if it’s anything like the direct method of calculating cash flow, those items should all be included.
Bucephalus Wrote: ------------------------------------------------------- > Can anyone tell me why the equipment purchase is > not an outflow? You’re spending cash right? And > it’s overall cash flow, not CFO as I read it. > > Thanks! it is, it hits CFI, also called CAPX