Hi everyone,
I am trying to figure out what's going on with the CF statement of the company I am analyzing. Indeed, I don't understand what they have done with some elements of the CF and income statement. Accounting principles used are US Gaap.
I attached the income statement, the CF statement and the notes related to the entries I will talk about. It is a listed company so it doesnt have to be anonymous.
1) In "Adjustments to profit" in the CF statement, why did they put "Financial Income" as a negative number and "Financial expenses" as a positive one? (I suppose it's an adjustment but I still dont understand the maneuvering)
2) In "Other cash-flows from operating activities" in the CF statement you will find interest paid and interest received, which are financial expenses and financial income respectively. So I suppose those numbers are somehow related to the ones above?
I need to insert numbers in my software but with these entries I don't know how to proceed...
Thank you very much for your help!!
Martin
I am trying to figure out what's going on with the CF statement of the company I am analyzing. Indeed, I don't understand what they have done with some elements of the CF and income statement. Accounting principles used are US Gaap.
I attached the income statement, the CF statement and the notes related to the entries I will talk about. It is a listed company so it doesnt have to be anonymous.
1) In "Adjustments to profit" in the CF statement, why did they put "Financial Income" as a negative number and "Financial expenses" as a positive one? (I suppose it's an adjustment but I still dont understand the maneuvering)
2) In "Other cash-flows from operating activities" in the CF statement you will find interest paid and interest received, which are financial expenses and financial income respectively. So I suppose those numbers are somehow related to the ones above?
I need to insert numbers in my software but with these entries I don't know how to proceed...
Thank you very much for your help!!
Martin
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