In CFAI text book FRA page 365, should the bottom one be net cash provided by operating activity - discontinued operations (not continued operations)?? A bit confused. Also on page 366, net investing activities - continuing operations should be (- discontinued operations)??
The stmt of cf is providing information on two viewpoints: One with the effect of the discontinued operations. The other one without the effect of disc. ops. The implication is that the disc. ops used up some of the cash before they were sold, discontinued etc. When only taking into consideration the continuing ops, the cash provided is higher in the case of Cf from operating activities and less negative when it comes to Cf from investing activities. Again, this implies that the disc. ops used up more cash than they provided…
thanks for the explanation!