Message Font: Serif | Sans-Serif
No. of Recommendations: 3
Hi kelbon,

Further they would have to be subtracted from the total—Net cash provided by (used in) operating activities)—not added.

If I'm following what you are saying, I don't think this is correct. The stock based compensation is expensed on the income statement using Black-Scholes under the expense category appropriate for whoever they were awarded to. Since they are non-cash in nature, they are added back as a positive amount on the cash-flow statement to keep the cash usage correct. If I've missed your point, I apologize.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.