cash flow analysis example ppt

... subset of them—for example, net cash low, operating cash low, and free cash low Past Cash Flow Types of Cash Flow Future Flow Operating Cash Flow Free Cash Flow Net Cash Flow All Cash Flows These terms ... becoming ‘cash insolvent,’ it is essential that you and all the company’s managers accurately forecast and monitor their area’s cash receipts and payments Trang 15How is Cash Flow Defined?Cash low ... available cash It is common for a balance sheet to show only a tiny amount for cash because businesses often operate with an overdraft and only petty cash is included Trang 16A Cash Flow ForecastThere

Ngày tải lên: 05/11/2014, 22:44

... period , E[ ] = expected net cash flows in period , Var[ ] = variance of the net cash flows in perio n n n (1 ) N n n n A i i Trang 26Case 2: Dependent Cash FlowsTrang 27Example 12.7: Aggregation ... of cash flows in each period, and then aggregate the risk over the project life in terms Trang 25Case 1: Independent Random Cash Flowswhere = a risk-free discount rate, = net cash flows ... Risk Over Time Trang 28Solution: NPW DistributionTrang 29Case 1: Independent Cash FlowsTrang 30Case 2: Dependent Cash FlowsTrang 31Normal Distribution AssumptionTrang 32NPW Distribution with ±3σTrang

Ngày tải lên: 18/12/2017, 15:23

... shield on Bottoms Up’s cash flows After-tax Cash Flow from Operations (excl CCA) 0) 90) 0) 90) 0) 90) 0) 90) 0) 90) 0) 90) 0) Cash Flow from Sale of Old Total Cash Flow (excl CCA) -4,0) ... capital Operating Cash Flow Total Cash Flow c The project NPV is calculated in two phases First, we calculate the present value from cash flows excluding the CCA tax shield: Total Cash Flow (excluding ... Investment cash flow (B) 31,60) 0) 1,10) 0) 1,10) 0) 2,20) 0) 0) -11,0) 0) 0) Total cash flow (excluding CCA)(A – B) -31,60) 0) 7,675 9,137 9,50) 0) 14,625 25,625Present value of total cash flow

Ngày tải lên: 24/02/2018, 08:34

... of Cash FlowsCash Flow from Operating Activities Trang 29Indirect Method Statement of Cash FlowsCash Flow from Investing Activities Trang 30Indirect Method Statement of Cash FlowsCash Flow ... 1Funds Analysis, Cash-Flow Analysis, and Financial Planning Trang 2Funds Analysis, Cash-Flow Analysis, and Financial PlanningFlow of Funds (Sources and Uses) Statement Accounting Statement of Cash ... 23Statement of Cash FlowsCash Flow from Operating Activities Shows impact of transactions not defined as investing or financing activities These cash flows are generally the cash effects of

Ngày tải lên: 06/08/2019, 13:05

... subset of them—for example, net cash low, operating cash low, and free cash low Past Cash Flow Types of Cash Flow Future Flow Operating Cash Flow Free Cash Flow Net Cash Flow All Cash Flows These terms ... becoming ‘cash insolvent,’ it is essential that you and all the company’s managers accurately forecast and monitor their area’s cash receipts and payments Trang 15How is Cash Flow Defined?Cash low ... available cash It is common for a balance sheet to show only a tiny amount for cash because businesses often operate with an overdraft and only petty cash is included Trang 16A Cash Flow ForecastThere

Ngày tải lên: 08/09/2020, 13:56

... 1Lesson #4 Cash Flow AnalysisAdvanced Accounting AY 2022/2023 Trang 2Statement of Cash Flows▪ The purpose of the statement of cash flows is toprovide information on cash inflows and outflows for ... accounting and Cash basisaccounting – Net cash flow as the end measure ofprofitability Trang 6Statement of Cash FlowsHow do people use cash flow information? The statement of cash flows helps to: ... of discretionary cash flows ▪ The size, composition, pattern, and stability of operating cash flows Insights from Analysis of Cash Flows Trang 641 Increase in operating cash flow deriving from

Ngày tải lên: 24/07/2025, 20:47

... acquisitions? cash flows? Trang 27Analysis of Cash Flows • Inferences from analysis of cash flows include: – Where management committed its resources – Where it reduced investments – Where additional cash ... operating activities distorts our analysis of both operating and investing activities Trang 21Analysis Implications of Cash Flows Trang 23Analysis Implications of Cash Flows • An income statement records ... accounting and Cash basis accounting. – Net cash flow as the end measure of profitability – Cash flow analysis helps in assessing liquidity, solvency, and financial flexibility. Relevance of Cash Trang

Ngày tải lên: 31/10/2014, 10:24

... CASH FLOW $ 0.0 $ 79.7 $ 54.7 III TERMINAL YEAR CASH FLOWS RETURN OF NET OPERATING WORKING CAPITAL SALVAGE VALUE TAX ON SALVAGE VALUE TOTAL TERMINATION CASH FLOWS IV NET CASH FLOWS NET CASH ... Trang 10c The terminal cash flow is $50,702:d The project has an NPV of $10,841; thus, it should be accepted Year Net Cash Flow PV @ 12% Probability × Cash Flow = Cash Flow Trang 11Coefficient ... estimating net cash flows, and explain the four major ways that project cash flow differsfrom accounting income  Define the following terms: relevant cash flow, incremental cash flow, sunk cost,

Ngày tải lên: 01/07/2014, 21:28

... pro-duction and delivery schedules, and future payments for cash flow pur-poses This will enable the company to prepare better profit and cash flowprojections 3 Reduce the number of customer billings ... the company’s cash and profitability posi-tions However, effective operational analysis should go beyond financial analysis Trang 11analy-to include a more in-depth review and analysis of specific ... management and operations personnel 4 Development and analysis of systems flowcharts for all accounting tions and activities func-5 Development and analysis of data as shown above for each area of

Ngày tải lên: 14/08/2014, 12:21

... 1Estimating cash flows:Relevant cash flows Working capital treatment Inflation Risk Analysis: Sensitivity Analysis, Scenario Analysis, and Simulation Analysis CHAPTER 11 Cash Flow Estimation ... Estimation and Risk Analysis Trang 3Annual unit sales = 1,250.Unit sales price = $200. Trang 4Incremental Cash Flow for a ProjectProject’s incremental cash flow is: Corporate cash flow with the ... (i.e., increase cash flow estimates with inflation) than it is to reduce the nominal r to a real r. Trang 14Operating Cash Flows (Years 1 and 2)Year 1 Year 2 Trang 15Operating Cash Flows (Years

Ngày tải lên: 06/04/2015, 19:41

... should be incorporated as part of a project’s estimated cash flows? CHAPTER 11 CASH FLOW ESTIMATION AND RISK ANALYSIS Trang 2Relevant cash flows Answer: b Diff: E4 Which of the following statements ... also conducted a simulation analysis Their effortshave produced the following numbers: Estimated correlation of Cash flows are not Cash flows are highlyproject’s cash flows with highly correlated ... firm and will cause anactual cash outflow attributable to the project b Only incremental cash flows are relevant in project analysis and theproper incremental cash flows are the reported accounting

Ngày tải lên: 16/03/2017, 10:36

... 1CHAPTER 12 Cash Flow Estimation  and Risk Analysis Trang 5  5Incremental Cash Flow for a  Project  Project’s incremental cash flow is: Corporate cash flow with the project Minus Corporate cash flow without the project ... $32,783 Trang 18  18Salvage Cash Flow at t = 4  (000s) Trang 19 Cash flow from sale = Sale proceeds­  taxes paid.Trang 22Net CF ­$270,000 $105,780 $119,523Trang 26  26Is risk analysis based on historical  ... 13Why is it important to include inflation  when estimating cash flows?  Nominal r > real r.  The cost of capital, r,  includes a premium for inflation.  Nominal CF > real CF.  This is because  nominal cash flows incorporate inflation.

Ngày tải lên: 16/01/2020, 19:38

... speaking, the cash flow is negatively sensitive to cash in Chines firms • Hypothesis 2: The cash flow sensitivity of cash is asymmetric to the direction of the cash flow The cash flow sensitivity ... document that cash flow sensitivity of cash is negative when a firm face a positive cash flow environment, supporting Riddick and Whited (2009), but the cash flow sensitivity of cash is positive ... different amount of cash The goal of this paper is to show whether cash holding is sensitive to internal cash flow in Chinese listed firms, to demonstrate how the cash flow sensitivity of cash varies

Ngày tải lên: 01/02/2020, 23:18

... ratios They are Cash flow to sales ratio, Operations index and Cash flow returns on assets cash flow used for this ratio (in fact, for all cash flow ratio analyses) is the cash flow from operations ... operating index, cash flow to assets, and cash flow return on assets 2.2 Objectives of the study Cash flow ratio analysis is not a very simple procedure For determining cash flow ratios we always ... either cash flow statements, or even cash itself Auditors do not only fail to utilize statements of cash flow in conjunction with income statement and balance sheet as a way of tracing top cash flow

Ngày tải lên: 29/05/2020, 10:21

... relevant cashflows for each year of the project's life (i.e., the initial investment cost, the annual operating cash flows, and the terminal cash flows), then discounting those cash flows at ... project, then when cash flows for a project are estimated, interest payments should be included in the analysis TOPICS: Relevant cash flows KEYWORDS: Bloom's: Comprehension 7 Any cash flows that can ... own direct cash flows TOPICS: Relevant cash flows KEYWORDS: Bloom's: Analysis OTHER: Multiple Choice: Conceptual 44 Which of the following factors should be included in the cash flows used

Ngày tải lên: 05/09/2020, 16:45

... trọng bảo hiểm tiền Net Cash điều hành dòng + lãi vay đã trả Thuyết minh + lãi Bảo hiểm quan tâm Net Operating Profit + Thuế suất + (EBIT) Lãi suất hàng năm Bảo hiểm tiền Net Cash điều hành dòng ... năm Các công ty đều từ lĩnh vực viễn thông và các dữ liệu được thu thập từ các cơ sở dữ liệu FinAnalysis Tỷ lệ kiểm tra là - tỷ lệ hiện hành, thanh toán nhanh, tỷ lệ lãi suất bảo hiểm - tỷ lệ ... cùng ngành trong thời gian năm năm Các dữ liệu cho giai đoạn năm năm được lấy từ cơ sở dữ liệu FinAnalysis Có thrity bảy (37) Các công ty trong tập dữ liệu, tuy nhiên mười một (12) bị loại vì không

Ngày tải lên: 18/07/2021, 09:18

... specific focus on the cash position of a business the Australian accounting profession introduced the Statement of Cash Flows This resolved the lack of detail concerning cash flow and also provided ... comparable with regards to the short term liquidity analysis and they are specifically, the cash flow ratio, critical needs cash coverage ratio, and cash interest coverage ratio These ratios share ... Liabilities Cash Flow ratio Net Operating Cash Flow Total Current Liabilities Quick ratio (Acid- test) Total Current Assets — Inrentories — Prepayments Total Current Liabilities Critical needs cash

Ngày tải lên: 18/07/2021, 09:18

... it assumes cash will increase at the same rate as retained earnings. 2.7 Analyzing the Statement of Cash Flows The cash flow statement is broken up into three sections; cash flows provided ... CORPORATE BANKRUPTCY USING MULTIVARIANT DISCRIMINATE ANALYSIS (MDA), LOGISTIC REGRESSION AND OPERATING CASH FLOW (OCF) RATIO ANALYSIS: A Cash Flow- Based Approach Chapter 1: Introduction 1 1 ... profits while its cash reserves are drying up (Bragg, 2007). 19 annually issued statements without a substantial loss of accuracy. 2.10 Cash Flow- Based Ratios and Analysis Cash flows from operations...

Ngày tải lên: 01/06/2014, 14:03

... customers. An understanding of cash- flow dynamics and reasonable mas- tery of cash- driver language will help make these objectives realistic. Big-Gulp Sales Growth & Cash- Flow Implications T his ... supposedly breakeven basis still comes up nearly $175,000 short in cash terms. Growth takes cash, and lots of growth takes lots of cash because cash is the fuel on which the enterprise runs. And just as ... You must first pay careful attention to the cash effects of your growth rate. Growth takes cash and there is a balance point for growth, a point of cash- flow sustainability at which an organization...

Ngày tải lên: 20/06/2014, 18:20

... Let’s use a simple example. There might be major morale problems if payroll were to be converted from every two weeks to a monthly basis. Sure, it would free up cash; the cash- flow benefit would ... Receivable 121 | CHAPTER EIGHT CASH RULES 119 | SG&A: The Other Fundamental is incurred and when you actually lay out the cash that is, make the expenditure. This difference is at the heart of the cash- versus-accrual ... Margin: First of the Fundamentals 103 | CHAPTER SIX CASH RULES CHAPTER SIX CASH RULES ratio of 2 to 1 or more. Without the above contribution-margin analysis, this decision could wipe out the majority...

Ngày tải lên: 20/06/2014, 18:20