CMA Study Group

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  • 1.  Part 2 - Net Income

    Posted 01-17-2019 10:00 PM
    For the Part 2 exam, I'm getting a bit confused with Net Income.   I'm using the Wiley CMA study guide and seem to be getting consistently tripped up when deciding when to add taxes back when doing some of the ratio problems.   

    Any tips on how to get it cemented in my head on when to add taxes back and when to not?

    Thanks!

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    Kevin Razawich
    Camillus NY
    United States
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  • 2.  RE: Part 2 - Net Income

    Posted 01-20-2019 08:56 AM
    Depreciation tax shield is added back in cash flows and tax is deducted from cash flows and that is in discounted cash flows. Where is it in ratio analysis?

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    Javaria Sarwar
    Accountant
    Apex NC
    United States
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    Original Message