# CFF

Given data below: NI: 45 Depr: 75 Taxes Paid: 25 Interest Paid: 5 Dividends Paid: 10 Sale of Prefered Stock: 25 Repurchase of Stock: 15 Issuance of Bonds: 50 What’s CFF?

-10 (Dividends paid) +25 (Sale of Preferred Stock) -15 (Repurchase of Stock) +30 (Issuance of bonds) = +30

30 issuance of bonds?..you mean 50 i think…so +50…

chasinggoats Wrote: ------------------------------------------------------- > -10 (Dividends paid) > +25 (Sale of Preferred Stock) > -15 (Repurchase of Stock) > +30 (Issuance of bonds) > > = +30 Are both Taxes Paid Interest Paid categorized as CFF? Why not deduct here? Can’t recall now… Thx.

both are CFO under GAAP

Map is right. Wolverine, thanks for pointing out my typo. -10 (Dividends paid) +25 (Sale of Preferred Stock) -15 (Repurchase of Stock) +50 (Issuance of bonds) = +50

Thanks, all. Wait a second, just noticed the answer did not deduct those two item when calculating CFO. Why?

Yuppee… I did it in my head and got fee-ty

hyang Wrote: ------------------------------------------------------- > Thanks, all. Wait a second, just noticed the > answer did not deduct those two item when > calculating CFO. Why? Because those are items in the direct, not the indirect CFO calculation (here you probably have the indirect calculation, since you’re given NI).

Thx, map1. Yes, it should be so obvious they’re already deducted when calculating NI. Sigh… often stumbled on easy stuff.

I have a Schweser problem here that says Interest Expense would be non-operating for a manufacturing firm (for a financial firm, then it’s operating). Is there a difference here between ‘Interest Paid’ and ‘Interest Expense’? Thanks

your talking about interest expense vs interest cash flow. two different things. interest cash flow is always CFO under GAAP interest expense is classified as operating or non operating depending on type of company.

It depends what are we talking about, cash flow statements or income statement.

Thanks so much for the clarification.