OmarAdnan

CFO adjustment:
usually interest expense is operating expense.

In reported CFO, interest expense is capped, and therefore bypass CFO. To adjust CFO:
reported CFO-int expense

In reported CFI, the capped interest expense goes to CFI outflow, to adjust CFI:
reported CFI + int expense.

so we pretty much take interest expense from a CFI to CFO.

Total Asset adjustment:

reported Asset-capped interest+depretiation


I copied mostly from schweser notes, page 40, book 2