Regarding Cash Flows

[stons]

Hi All,

In the Financial Reporting Questions involving cash flows, some of questions have options such as the “Increased CFO / Decreased CFF / Increased CFI”

When the question refers to an “increase” of a cash flow, is it talking about the magnitude or the value?

eg: If the cash flow from operations is -1000 this year and last year it was -500, is this an “Increased” CFO?

[Naveenan_R]

@stons

When the question refers to an “increase” of a cash flow, is it talking about the magnitude or the value?

 

eg: If the cash flow from operations is -1000 this year and last year it was -500, is this an “Increased” CFO? 

Hi, I think a CFO of -500 last year and a CFO of -1000 this year is a “Decreased CFO”. I think it becomes clear if one assumes a CFO of +250 in this year. This is definitely an increase in CFO. However, if one thinks in terms of magnitude, we get a contrary answer. I hope this helps. Thanks.