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Sure that's the cash flow statement. When looking at free cash flows one would take into account changes in net working capital and adjust accordingly.

• samfisher83 10y ago
  From investopedia: Free cash flow is most commonly defined as operating cash flow minus capital expenditures You would need to make adjustments to the cash flow if you wanted to account for the extra liabilities since that doesn't use cash in the current quarter. My point is cash flow can be manipulated just like income statements. You really need to look at income statement, cash flow, and balance sheet to know what is going on.
  • Dwolb 10y ago
    That's the investopedia definition. Here's an alternate definition (and you'd adjust based on a given industry or company) Start with Net income + expenses not using cash (such as depreciation and amortization) - revenues not providing cash (such as recognition of deferred revenues) - increase in working capital or + decrease in working capital - increase in required cash balances or + decrease in required cash balances + interest paid in cash (recall that all firms must disclose this number) - interest tax shield (the tax “savings” from financing charges due to the tax deductibility of interest) - long term capital investment (including, but not limited to capital expenditures or “CAPEX”) + cash from sales of assets (including sales of PPE) = Free Cash Flows to the Unlevered Firm You'd continue on with more calculations to get to free cash flows to common equity or whatever you're interested in.