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URL:  http://boards.fool.com/question-about-free-cash-flow-15862271.aspx

Subject:  question about free cash flow Date:  10/4/2001  4:38 AM
Author:  ehgo Number:  436 of 437

i would appreciate it if someone could help me out.

my question is on free cash flow. one of the adjustments you make to net income in order to obtain FCF is to subtract increases in current assets. i was wondering since cash is also considered a current asset, if there's an increase in cash (let's say from disposal of PP&E) while the other current asset accounts remained the same, wouldn't you actually have to add the increase in current assets (ie. the cash account) to net income instead to obtain FCF??

thanks,

ehgo
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