Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (64633)	9/15/2003 11:39:17 PM
From: PerryA	Respond to of 77400

How about this cash flow statement below for Amazon? Good find! It doesn't surprise me coming from ScAmazon, though. Looks like they have the proceeds from exercise in the right place but are showing the issuance of stock-based compensation as part of operations. Issuing stock, options and debt are financing activities, so hopefully any future legislation or FASB statements will correct this misleading type of reporting. Regards, PerryA

To: hueyone who wrote (64633)	9/16/2003 7:26:58 AM
From: rkral	Respond to of 77400

OT ... Huey, re "Unless the FASB requires companies to put it back in the cash flow from financing activities [ed: ...] most companies will just throw it back in the cash flow from operations section and tout their cash flow from operations." True .. unfortunately. But then, most everyone wants the light to shine on them in a favorable manner. There are probably some managements who reason .. "without operations, there would be no employees .. and without employees, there would be no option expense .. so non-cash option expense must be related to operating cash flow". <GG> Regards, Ron