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Let me throw one more (remedial) question out on this board... and this is basic enough that any of the many readers of "It's Earnings That Count" can help me out... I swear I'm going to read this soon, but my queue is so long...

In the Defensive Earnings... when he subtracts out investments in working capital... Is he subtracting out net additions to total working capital, or just additions to non-cash current assets? For example, if a company adds $1 in incremental inventory, but accounts payable also increases by $1... is it a wash, or is $1 subtracted from defensive earnings?

Thanks in advance.
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