Please explain cash flow calculations



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Hi Binny,

Can you please explain the 4th question from the quiz of lecture on Cash Flow Statement. If the $200m is taken as loan to open a new store, the then the Cash on Investment decreases by $200m, as it was a loan but how does the Cash on finance increases by $180m? shouldn't it be $220m (loan amount + interest)?

2 Answer(s)


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Pradyut, You are right the cash flow from financing will increase by 220 and not 180. We will fix it. Thanks

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I guess that calls for upgrading of my marks ;-)