Page 20 - How Not To Cook The Books Article
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Shareholder funds
Diagram 6
Beware "free cash flow"
Although free cash flow has no official definition by any authoritative
accounting rule-making body it still nevertheless has a cachet for
appealing to the gut rather than the brain. For Unwin it would appear that
what should have been a cash generating business producing
substantial free cash flow (See Diagram 7) turned out to be a millstone that
drained resources.
