Is interest expense a cash flow transaction?
I keep my personal finances on ledger (http://www.ledger-cli.org/) and I am working to create a cash flow report. For this report, I'm listing all the income and expenses of the month and all the payments I make to debt. I keep track of interest charges as an expense, so it's showing on this report but I wonder if it should. Should any charge on the credit cards be on the cash flow report for that matter?
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Yes, "Interest Expense" is an "Operating cash outflow".
If it is booked properly on the income statement, it should easily be shown on the cash flow statement by the direct method.
By the indirect method, it will already be shown as operating cash flow by "Net income".
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