Schwaser recorded the equation for cash flow based accruals wrong. The correct equation is (NI - CFO + CFI)/(NOA end - NOA beg)/2 NOT (NI - CFO - CFI)/(NOA end - NOA beg)/2 as reported in Schwaser
fucker, both results are the same.
the scweser formula is right, however , cashflows from investments are usually negative, so you add them instead of subtracting them.
no such thing as usually.
You are missing a ( in the first formula. It should be: (NI - (CFO + CFI)/(NOA end - NOA beg)/2 Which is the same as (NI - CFO - CFI)/(NOA end - NOA beg)/2
You guys are all posting bad info the denominator is (NOAbeg + NOAend)/2 =>Avg NOA The numerator is NI-CFO-CFI the reason you added it is because it must have been a cash outflow