Net Income to CFO

Makavelim3

Net Income = $100
Depreciation = $2
Purchase of held for trading securities = $10
What is CFO?

What do you think? How do we handle "Purchase of held for trading securities"?

pacmandefense

adq123 Wrote:
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> Purchase of Held for trading is a CFO.. So im
> guessing its
>
>
> 100+2-10 = 92

Are you guessing the fact that "Purchase of Held for trading security is a CFO", or approach to calculate it?

eagles_dare13

adq123 Wrote:
-------------------------------------------------------
> Purchase of Held for trading is a CFO.. So im
> guessing its
>
>
> 100+2-10 = 92


Ya, what was confusing me was that 'purchase of held for trading' is neither non cash nor non operating so was wondering why NI has to be adjusted. But figured that it doesn't appear in Income statement while it is considered in CFO hence needs to be adjusted (I think... saw it in my own notes so its just my guess)... What say?

farrukhsadiq

What happens to other securities with respect to cash flow treatment?

koba

sgupta0827 Wrote:
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> What happens to other securities with respect to
> cash flow treatment?

Others are investing

siavosh

anish Wrote:
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> sgupta0827 Wrote:
> --------------------------------------------------
> -----
> > What happens to other securities with respect
> to
> > cash flow treatment?
>
> Others are investing


hmm Thanks that's what I guessed just wanted to confirm.