easy · Investment Banking accounting

SaaSCo reports Net Income of $300M and Stock-Based Compensation (SBC) of $25M.

On the Cash Flow Statement, how is SBC treated in the Operating section?

  1. Added back as a $25M non-cash charge
  2. Subtracted as a $25M cash outflow
  3. Not included in the Operating section
  4. Added back as an $18.75M tax-effected charge

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