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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 76.93+1.2%Nov 28 12:59 PM EST

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To: RetiredNow who wrote (62741)1/21/2003 6:23:19 PM
From: rkral  Read Replies (1) of 77400
 
mindmeld,

I'm just beginning to try to understand CF and FCF, so please bear with my questions.

Why is APIC excluded from FCF? Aren't you talking about the exercise price the company receives upon option exercise? Isn't that bona fide cash? Why would bona fide cash be excluded?

It appears to me that cash flows from financing and investing activities are never included in FCF. IOW, FCF only includes selected accounts from operating activities. Is that interpretation correct? If yes, why is that true?

TIA, Ron
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