Elan FRA Question someone, correct, account, problems, equipment

aurific

Could someone please help me uderstand the Elan problems in FRA, Reading 34, #9 and #10?

I got them wrong b/c I did not account for depreciation in #9 and then left out depreciation and gain on sale of equipment for #10.

I thought that when you calculate CFO you are supposed to ignore noncash charges and non-operating items, is this correct?

I appreciate any insight anyone can offer.

Thanks!

FVPV

I'll just add to what ravinsu said. You ignore non-cash charges and non-operating items when calculating CFO using the direct method.