Is this question referring to material on page 230 to 231? Why was the net periodic benefit cost used instead of the economic benefit expense? Or am I completely misreading the question? Actually i dont really know what yhey are asking. I’m confused. Please help!!
They are asking you about the REPORTED cash flow statement not the adjusted one - so basically, you have an expense of 1050 but it’s non-cash you have on the other hand a CASH contribution of 526 so the REPORTED CF statement (using indirect method) would adjust net income by difference of 1050 - 526 if the question is asking for a financial analyst adjustment then u should use after-tax economic expense I have just finished the reading so I’m fresh with this material
Example of ‘if the question is asking for a financial analyst adjustment then u should use after-tax economic expense’ is EOC 6 on the same reading
Thanks so much!