Interest Paid vs Net Finance Cost - Reformulated Cash Flow Statement
Hi WSO,
I'm currently having to "reformulate" my financial statements (Anyone who has come across Penman's Financial Statement Analysis will understand) for Whitbread plc and one of my tasks is to rearrange the cash flow statement.
I'm currently trying to find FCF. However I was wondering if people could tell me which "finance/interest" expense I keep in the "Cash Generated from Operations" part of my cash flow statement, and which "finance/interest expense" I move to "Net Financing Cash flows".
As you'll see on page 92 of the accounts, there is a charge of £44.5M for a "Net Finance Cost" in Cash Generated from Operations Before W/C charges, and then a line item of "Interest Paid" for £19.8M.
Can anyone explain the difference between the two figures and why they arise? I can't find the £19.8M anywhere else in the accounts.
Help would be very much appreciated (especially if it's vocalised in a manner suitable for someone with little understanding - I want to understand rather than memorise)
Thanks!
https://www.whitbread.co.uk/content/dam/whitbread/pdfs/investors/report… - Link to the Accounts
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