brainsX

partly aggree. The portion of the payment as interest reduce CFO, portion towards principle reduce CFF....



piwanowi Wrote:
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> also remember that if you were to capitalize a
> lease that was originally operating, you need to
> adjust the CFs as well. Since under operating you
> had just rent expense that depressed NI, you need
> to add back the Depreciation portion to CFO and
> then the interest part is subtracted from CFF
> since it would be as if you paid off part of an
> amortized loan.