That extraordinary and the investing activities and they want investments a divestiture ‘he’s any an active any any anything that’s not related to the core operations of the assets I’m gonna make everything the investing activities all the effects of this hatboxes as absolutely key to the operations are you okay and I’m going to like that anything that’s extraordinary not based on outrageous.
what about this continuing operations this other operating activities and have extraordinary and non-standard when you take a stand of cash flow statement and what about anything extraordinary anything based on one of investments based on payments to lenders famous equity holders what are we left with well as the net and go we’re left with depreciation amortization of deferred taxes what are you everything based on working capital and cape those are the major components of on every Catholic.
so when you look at the slide here what I’m doing is the same thing I’m taking just simplify the castle statement and crossing off everything related to finance activities anything related to other investigative except cape just like we did with Walmart and what are we left with a look at the lab you’re left with that come depreciation amortization of deferred taxes maybe then throw in some other non-cash items.
if they’re not extraordinary working capital less chem ex that’s what we just did in one and two new level nondepreciating throw taxes and becomes appreciation for taxes change in working capital is context for you but I had in something here which you need to have into make this completely I’ll ever because net income is naturally after interest you need to add back after tax interest expense that’s how you get from the cash flow to elaborate free capital and that is the form of the wrong number the cash flow so it’s important you have to see you don’t have to memorize.
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