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To: Tenchusatsu who wrote (152780)12/18/2001 12:50:47 PM
From: Dave  Respond to of 186894
 
Tench,

This is more of a "finance" thing.

In a statement of Cash Flows, there are three segments: (1) Operations, (2) Investing, and (3) Financing.

Of course, when a party adds to their Plant, Property and Equipment (PP&E), it is not immediately "expensed" on their Income Statement. Instead, it is expensed over its useful life, hence deprecation. Depreciation is a non-cash charge, since the money was spent at some point in the past. That money spent is reflected in a corporations previous Investing Cash Flows.

Tench, I believe you are confusing "Cash Flow from Operations" with "Free Cash Flow"