Finance Junkie
Posts: 258
Joined: Thu Sep 20, 2012 3:42 pm


Postby pradeeppdy » Tue Nov 27, 2012 2:29 pm

when we are deducting the interest expenses on bond from the net income for the purpose of cfo calculation, then what amount we will consider coupon payment or interest expense(excluding o including amortization of premium o discount)?


Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

Re: fra

Postby pankaj » Wed Nov 28, 2012 2:45 pm

Something is wrong in your question.
Cash flow from Operations
The steps for calculating the cash flow from operations using the indirect method:

1. Start with net income.
2. Add back non-cash expenses.
(Such as depreciation and amortization)
3. Adjust for gains and losses on sales on assets.
Add back losses
Subtract out gains
4. Account for changes in all non-cash current assets.
5. Account for changes in all current assets and liabilities except notes
payable and dividends payable.

Hope this helps!

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