In my previous free cashflow analysis post using Frasers Commercial Trust, I have briefly sidetracked to touch on the problematic nature of Business Trust and that Netlink Trust is another business that actually borrows from the bank to finance its current high dividend distribution of 5.42% (based on 7 Sep 2019 closing price of S$0.90) and that it will most likely not be sustainable in the long run due to a deficit of <S$33Mil>. I will illustrate this using a shortcut methodology below and discuss some of the main technical points: 1. Is interest paid for loans an operating activity or financing activity? The good thing about Netlink Trust financial statements is that unlike many companies which deemed interest paid as “Net cash used in financing activities”, financing cost paid by Netlink Trust is included under “Net cash from operating activities”. Many of the partners of Big 4 accounting firms argue...