- This topic has 3 replies, 2 voices, and was last updated 6 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘Cash Flows’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for June 2024 exams, Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Cash Flows
Hello.
In chapter 8, the 2nd lecture or the Relevant cash flows for DCF Working capital (examples 2 and 3) lecture, why is it that the operating cash flows are negative?
As always, really thankful for the lectures and all the help 🙂
But the operating cash flows are not negative!
In example 3, the operating costs are negative because they are payments (but the revenue is an inflow and the net operating flow is positive).
The working capital flows are negative because money is being paid out to finance the working capital.
Right, thank you 🙂
You are welcome 🙂