399 words - 2 pages
December 7, 2013
Cash flow statements are important for every business. Cash flow statements tell investors, banks, and the company’s management what is going on with the company’s cash. Investors want to know if a company can and if they have paid dividends and a cash flow statement can provide this kind of information. When banks look at giving a loan to a company they look at a lot of different statements and on of them is the cash flow statement. From a cash flow statement banks can determine if a company is handling there cash intake and out flow correctly. A cash flow statement can also show if a company is doing something shady with their money or...
273 words - 2 pages
Little Bit Inc.
Statement of Cash Flows
For Year Ended December 31, 2009
Cash flow from operating activities:
Net income $ 5,500
Non-cash expenses included in net income:
Depreciation $ 18,000
Deferred income taxes 500
Cash provided by (used for) current assets and liabilities:
Accounts Receivable $ 6,500
Prepaid expenses 4,000
Accounts payable ...
4279 words - 18 pages
CHAPTER - 1
1.1 Background of the study
'Co-operative' refers to work together for common benefit. A co-operative organization is such an organization which is established by economically weak persons. This organization functions under their mutual co-operation of all the members. Specially, co-operative organization is such autonomous organization, which is established voluntarily by the group of persons for the fulfillment of the social, economical and cultural expectations with the democratic control and flow. If we analyze the history of it, we can find that it is the organization established by economically and socially exploited people from the rich...
428 words - 2 pages
A. Briefly state how the Income Statement is different from the Cash Flow Statement. Give examples of decisions that can be made from the information provided by each of these statements?
-The income statement shows how much revenue a company has earned over a period of time, which is usually for a year. The income statement also reports the costs and expenses associated with earning the revenue. At the bottom of the income statement it shows the net inome, which shows the actual earnings after expenses, taxes, etc are taken out. This can be a net profit or net loss, depending on how the company performed that year. The cash flow statement reports a company’s inflows...
637 words - 3 pages
Refer to P&G's financial statements and the accompanying notes to answer the following questions. (a) What alternative formats could P&G have adopted for its balance sheet? Which format did it adopt? (b) Identify the various techniques of disclosure P&G might have used to disclose additional pertinent financial information. Which technique does it use in its financials? (c) In what classifications are P&G's investments reported? What valuation basis does P&G use to report its investments? How much working capital did P&G have on June 30, 2007? On June 30, 2006? (d) What were P&G's cash flows from its operating, investing, and financing activities for 2007? What were its trends in net cash...
728 words - 3 pages
2. Briefly describe the differences between a hostile merger and a friendly merger. Is there any reason to think that acquiring companies would, on average, pay a greater premium over target companies’ pre-announcement prices in hostile mergers than in friendly mergers?
Mergers can occur on either a friendly or a hostile basis. A friendly merger occurs when the target company's management agrees to the merger and recommends that shareholders approve the deal. However, the shareholders of the target firm must vote on the merger, but managements support generally assures the vote will be favorable. Once the stockholders approve the merger, the transaction is typically consummated either...
254 words - 2 pages
1) In the portal associated with the financial analyst role there will be a BAPI based web service that assists the analyst in performing a detailed cost analysis. Ideally the BAPI will be able to pull major cost centers throughout the organization which will give the analyst an estimate of the expenses generated along with their breakdown
2) Also part of the role would be a web service that returns a financial position summary with current assets, liabilities of the organization credit ratings of vendors. All the above information can be looked at by month, by year or by department. This data gives the analyst valuable information of the company’s current...
1297 words - 6 pages
TO: Go With the Flow Inc.
FROM: Olivia Bogle, Laura Cox, J.T. Mack, and Erica Patterson
RE: Statement of Cash Flows
Go With the Flow Inc. (Go With the Flow) designs, manufactures, and sells a large variety of mobile network and communication products. The company’s communication devices include mobile, cordless, and corded telephones. Go With the Flow’s liquidity primarily comes from the company’s cash flows, debt and revolving credit facilities, and the sale of trade accounts receivables. Three of the company’s cash flow transactions are insurance settlement proceeds, sale of accounts receivable, and acquisition of property, plant, and equipment on account. This memo...
516 words - 3 pages
2011 CF forecast for LL requested by bank (Finance)
Our 2011 cash flow forecast assumes that the union will accept LL’s revised offer in June and the strike was only for April, 2010 which will not affect fiscal 2011 since the offer would be retroactive to April 30, 2010. Our forecast also assumes that MRL’s cash flows are excluded.
Our calculations are in APPENDIX. It shows that cash flow for 2011 is forecasted to be $8,646,000. Furthermore, cash flow is expected to decrease steadily in 2012 and beyond. It is doubtful that LL can remain as a going concern.
Our calculations are based on Mark’s assumptions about sales and operating costs reverting back to 2009 levels, as well as...
2103 words - 9 pages
Time Value of Money Terminology
Terminology (AKA jargon) can be a major impediment to understanding the concepts of finance. Fortunately, the vocabulary of time value of money concepts is pretty straightforward. Here are the basic definitions that you will need to understand to get started (calculator key abbreviations are in parentheses where appropriate):
A banker's year is 12 months, each of which contains 30 days. Therefore, there are 360 (not 365) days in a banker's year. This is a convention that goes back to the days when "calculator" and "computer" were job descriptions instead of electronic devices. Using 360 days for a year made calculations easier to do. This...
284 words - 2 pages
Liabilities - Effects Of Capital Vs. Operating Leases
Capital Leases - Effects On:
• Balance sheet - At the inception of a capital lease, the company leasing the equipment will record the equipment as an asset, and the company will also recognize a liability on the balance sheet, by an amount equal to the present value of the minimum lease payments.
The discount rate used will be the lower of the following two rates:
The lessor's (the rental company's) implied rate
The lessee incremental borrowing rate
Going forward, the leased asset is depreciated in a manner consistent with the lessee's usual policy for depreciating its operational assets. It can be over the term of the lease...
1644 words - 7 pages
Chapter 5: Statement of Cash Flows
Objectives of the SCF
•Companies are required to include statement of cash flows (SCF) as part of their F/S.
•Historical CF are often used as indicator of amount, timing, and uncertainty of future CF.
•The objective of the SCF is to disclose the historical cash flows of the enterprise during the reporting period for both feedback and predictive purposes.
Classification and Organization
The SCF is classified on the basis of the type of cash flow:
•Operating activities are the principal revenue-producing activities of the enterprise and the related expenditures.
* Cash inflow from operations is measured as cash...
1076 words - 5 pages
March 08, 2014
Professor Charlie Merritt
Argosy wheel industries are considering a three year expansion project. The Schilling Group is hired to evaluate the progression which involves long term opportunities for investment. We will provide a comprehensive report that outlines and illustrates several techniques that will show and evaluate capital projects, methods used for project selection, weighted average cost to the firm and the cash flow that is anticipated for the project. We will also incorporate the risk into the calculations from two projects. In this report we explain our findings...
2802 words - 12 pages
business builder 5
how to prepare a cash budget
zions business resource center
zions business resource center
how to prepare a cash budget
At its most basic level, a budget is a plan for owners and managers to achieve their goals for the company during a specific time period. In this business builder you will learn the fundamental concepts of cash budgets and how to evaluate your budget on a month-to-month basis.
What You Should Know Before Getting Started
• The Purpose of a Cash Budget • Why Prepare a Cash Budget?
How to Create a Cash Budget
• Time Period • Desired Cash Position • Estimated Sales and Expenses • Cash Flow Budget Worksheet
6 6 6 9
276 words - 2 pages
Long-Term Financing Paper
For a publicly traded company, shareholder value is the part of its capitalization that is equity as opposed to long-term debt. In the case of only one type of stock, this would roughly be the number of outstanding shares times current share price. Things like dividends augment shareholder value while issuing of shares (stock options) lower it. This Shareholder value added should be compared to average/required increase in value, also known as cost of capital. For a privately held company, the value of the firm after debt must be estimated using one of several valuation methods, such as discounted cash flow or others. Discounted Cash Flow (DCF) is used to determine...
333 words - 2 pages
Net Cash Flow = Net Income + Depreciation and Amortization
Net Working Capital => you have to remember!
NOPAT= EBIT (1-t)
OCF = EBIT (1-t) + Depreciation
FCF = EBIT(1-t) + Depreciation - Capital expenditures - Changes in Net Working Capital
CF to investors (CF from assets=FCF) = -CF from financing activities + interest
Cash flow to creditors = interest + retirement of debt – new debt issues =
= interest – Δ LT debt – Δ ST debt – ΔCurrent maturities of LTD
Cash flow to shareholders = dividends + repurchase of stock – new equity issues =
= -ΔStockholders’ equity + Net Income
Current Ratio = CA/ CL
Quick Ratio => you have to remember!
Debt ratio = TL/TA
D/E = TD/TE
4746 words - 19 pages
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
Michael C. Jensen Harvard Business School MJensen@hbs.edu
Abstract The interests and incentives of managers and shareholders conflict over such issues as the optimal size of the firm and the payment of cash to shareholders. These conflicts are especially severe in firms with large free cash flows—more cash than profitable investment opportunities. The theory developed here explains 1) the benefits of debt in reducing agency costs of free cash flows, 2) how debt can substitute for dividends, 3) why “diversification” programs are more likely to generate losses than takeovers or expansion in the same line of business or...
305 words - 2 pages
SKS Manufacturing has recently hired Deloitte & Touche as they are in a critical cash position with various internal inefficiencies in their procurement and production processes. Deloitte & Touche and SKS Manufacturing will need to work together in order to solve the issues present at SKS Manufacturing so they can be successful within the automotive parts industry.
Issues & Analysis
There are three key issues that are present at SKS Manufacturing that need to be systematically tackled in order for stabilization of the business to occur and the long-term redesigning process to be effective. The key issues facing SKS Manufacturing are: (1) cash flow shortage (2) weak...
1092 words - 5 pages
January 30, 2013
Decisions are made daily by company management, lenders, and shareholders. To make informed, intelligent business decisions, there are several strategies that are used by each of the fore mentioned entities. When deciding if investing is the right choice, if a company will be able to repay a loan, or what needs to happen to make a company more efficient, the best way to get an inside look at the company and the information needed, would be to look at the financial statements. By looking at the income statement, balance sheet, and the statement of cash flow, the financial health of the company can be discovered.
A shareholder or potential...
257 words - 2 pages
Pixonix was based in Canada - its revenues were denominated in Canadian dollars while a significant portion of its expenses were to be paid in USD. Thus, Pixonix had to convert its Canadian dollar cash flows into US dollars annually. Canadian dollar was strengthening and cash flow and profitability had been impacted positively. Cain was in a dilemma about what would happen to the value of CAD at the end of January when the company has to pay USD 7.5 million for licensing proprietary tools and software through a US company. In other words, she was worried about the effect the volatility in CAD would have on the company’s cash flows.
Pixonix should hedge its USD position. In case if...
569 words - 3 pages
ACC 547 Entire Course | All Assignments
ACC 547 Week 1 Individual Assignment Personal Budget, Balance Sheet, and Cash Flow Statement
Choose a client or yourself. For confidentiality purposes, use a fictitious name.
Prepare a personal budget, balance sheet, and cash flow statement.
Write a memo that includes the following:
• A summary of the facts, including ages of the client, spouse, and dependents; educational background; income status of client and spouse; and two major concerns and goals.
• Summary of key items and findings from the personal budget, balance...
3272 words - 14 pages
Investment Corporation of Bangladesh
CONSOLIDATED BALANCE SHEET
as at 30 June 2010
Note Property and Assets Cash and Bank Balances Investments: Government Securities Capital Investment in Other Institutions Marketable Securities- at cost Bonds Loans and Advances: Margin Loan – Secured Unit & Mutual Fund Advance Account – Secured Consumer Credit Scheme Bridging Loan Debenture Loan Lease Receivables Other Loans and Advances Premises and Equipment
(at cost less depreciation)
2010 Taka 14,889,072,118 10,904,253,683 27,500,000 10,876,753,683 9,790,069,307 7,977,621,665 92,397,583 33,320,497 293,519,325 56,275,081 425,531,944 911,403,212 142,683,728 3,228,839,150 38,954,917,986
809 words - 4 pages
Caledonia Products Integrative Problem
August 19, 2012
1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project?
It is important that Caledonia Company should focus on the free cash flows instead of the accounting profits. With the free cash flows that the company receives they can reinvest. To accurately analyze the timing of the benefit or cost we can examine the cash flows. The only cash flows that the company should be interested in are the after-tax basis because these are the flows that are available to shareholders. When we look at the company as a whole,...
332 words - 2 pages
After careful cash flow analysis and a discount rate (WACC) of 9%, commissioning a capsize carrier for 25 years is the only appropriate option for our firm. However, if the discount were instead 10%, both options would fail the NPV test by yielding negative results. I make this recommendation after thorough analysis of estimated cash flow and with the desire that our required 15-year life span will be amended.
With the expected 9% discount rate, commissioning a capsize carrier for 15 years and then scrapping it as is company policy would ultimately yield a NPV of (1,252,916). However, if Ocean Carriers decided to commission its ship for 25 years, then the NPV would be a positive 368,557....
317 words - 2 pages
The NPV and IRR methods would in certain situations give the same accept-reject decision. But they may differ in the sense that the choice of an asset under certain circumstances may be mutually contradictory. The two methods would give consistent results in terms of acceptance or rejection of investment proposals in certain situations such as conventional investments or independent proposals. A conventional investment is one in which the cash flow pattern is such that an initial investment is followed by a series of cash inflows. Thus, in the case of such investments, cash outflows are confined to the initial period. The independent proposals refer to investments the acceptance of which...
326 words - 2 pages
The four basic financial statements are the balance sheet, income statement, statement of cash flow, and the statement of retained earnings. The balance sheet depicts the current financial circumstances of the company. This reports the company’s assets, liabilities, and net equity as of a given point in time. The income statement reports the company’s cost and revenues. This reports the company’s income, expenses, and profits over a period of time. The statement of cash flow describes the changes is cash and cash equivalents. This reports the company’s activities, such as its operating, investing, and financing costs. The statement of retained earnings...
1780 words - 8 pages
Vipin Sekar Chandrasekar
Date : November 6, 2015
A Summary of the Economist Article: Reinventing the Company (October 24, 2015)
The article talks about the rise of startups and the way they are changing how business is done
and what it means to be a company. They are referred to as disrupters or insurgent companies.
It illustrates this fact further with examples of Uber, Airbnb and cloud computing companies
who are now threats to cabbies, hoteliers and hardware makers.
It also points out the unique characteristic of these insurgent companies, which is the fusion of
1593 words - 7 pages
Key Performance Indicators
( Tk./ Share)
Market Price of Share
Earning Per Share
Annual Report 2008-2009
Five Years At a Glance
Authorized Capital Paid up Share Capital Reserves and Surplus Shareholders' Equity Total Assets Fixed Assets - Cost Fixed Assets - Carrying Value Net Working Capital Net Profit for the year 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk 000'Tk. % % % Tk. Tk. Times Times Days Tk. % Tk. Tk. % Times No. No. No. 2008-2009 200,000 178,678 13,751...
745 words - 3 pages
FIN 534-Homework Set 1
1. What is the free cash flow for 2014?
2. Suppose Congress changed the tax laws so that Berndt’s depreciation expenses doubled. No
changes in operations occurred. What would happen to reported profit and to net cash flow?
3. Calculate the 2014 current and quick ratios based on the projected balance sheet and income
statement data. What can you say about the company’s liquidity position in 2013?
4. Calculate the 2014 inventory turnover, days sales outstanding (DSO), fixed assets turnover, and
total assets turnover.
5. Calculate the 2014 debt ratio,...
1123 words - 5 pages
March 24, 2013
BUS 401 Principles of Finance
Caledonia products is a company in which wants to foresee if the company should be invested into and if it has potential to invest. As we focus on free cash flows other then accounting profits because there are flows in which the firm receives and can reinvest. By only examining cash flows which is, “the amount of cash available from operation after the firm pays for the investment it has made in operating working capital and fixed assets. This cash is available to distribute to the firm’s creditors and owners.”( Keown, A., Martin, J., & Petty, J. (2011). Foundations of finance (7th ed.). We are only...
963 words - 4 pages
It is often common to see start-ups and small biotechnology companies sell their technologies to bigger companies. The bigger companies purchase these technologies with hopes of making huge profits while the biotech companies sell in other to get finances to proceed with other business ventures or to stay in business. In order for both parties to benefit, major decisions have to be made on the method of valuation. The method used has to be objective and valid. This case study is about LAB and its decision to license off Davanrik to Merck.
This analysis is about how Merck has been able to generate substantial returns given the costly and lengthy time to develop drugs and the potential...
973 words - 4 pages
Learning Team A Capital Budget Recommendation
Gerald Shaw, Kenneth Barre, Rosa Daws
February 23, 2015
Learning Team Weekly Reflection Week 2
For this week’s assignment Learning Team A will be providing insight on the three capital budgeting techniques in relation to the Guillermo Furniture Scenario. Learning Team A after careful evaluation of the data sheets provided for Guillermo Furniture will identify the best uses for the three techniques and lastly provide a capital budget recommendation that best suites Guillermo Furniture.
Three Capital Budget Evaluation Techniques-Gerald
389 words - 2 pages
Top of Form
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 10/14/2013 |
Time Spent: | 03 min , 40 secs |
Points Received: | 18 / 30 (60%) |
Question Type: | # Of Questions: | # Correct: |
Multiple Choice | 5 | 3 |
Grade Details - All Questions |
1. | Question : | You work for Athens Inc. and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 operating cash flow? Sales revenues: $15,000
911 words - 4 pages
THIS IS A PRELIMINARY DRAFT OF THE 3rd EDITION IM AND IS SUBJECT TO CORRECTION AND REVISION. IF YOU FIND ERRORS IN THE TEXT OR CALCULATIONS, OR HAVE OBSERVATIONS REGARDING THE CONCEPTS PRESENTED, PLEASE E-MAIL THE IM AUTHOR AT: firstname.lastname@example.org .
Professor of Financial Economics
University of Nebraska
Solution to Just For Feet, Inc.: Chapter 2
Just For Feet, Inc. Financials and Financial Ratios
ASSETS 30-Jan-99 31-Jan-98
Cash and equivalents $12,412 $82,490
Accounts receivable 18,875 15,840
Merchandise inventory 399,901 206,128
Other 18,302 6,709
1208 words - 5 pages
Case #2 (Eagle Impairment Loss)
Question 1: The Impairment Loss of Eagle in Italy under IFRS
Recoverability test: Asset’s carrying amount exceeds the recoverable amount which is the higher of the asset’s value-in-use (discounted present value of the asset’s expected future cash flows) and fair market value less costs to sell. (IAS36-15)
According to IAS36-6, “an impairment loss is the amount by which the carrying amount of an asset or a cash-generating unit exceeds its recoverable amount.
The impairment loss = Carrying amount - Value in use = $1,100,000-900,000=$200,000
Question 2: The Impairment Loss of Eagle in Italy under U.S. GAAP (FASB 360-10)
Recoverability test: Asset’s...
302 words - 2 pages
BGA1 Task 4 308.1.8-05,12
The weighted average cost of capital for this company is 9.48%.
Cost of capital is often used in net present value analysis as the discount rate, which is the rate that other investments would return that have similar risks. Cost of capital is the total of all of the actual costs of a company’s debts and equities. These costs include such factors as interest, tax expense, and equity costs. It is what percentage it costs the company to tie up its capital, so in order for an investment to be desirable, it must return a percentage greater than what it takes for the company to cover its capital costs. In a net present value analysis, the cost of capital is...
1248 words - 5 pages
Devry ACCT 304 All Weeks Discussions-Latest 2015
IF You Want To Purchase A+ Work then Click The Link Below For Instant Down Load
IF You Face Any Problem Then E Mail Us At JOHNMATE1122@GMAIL.COM
Development of Accounting Standards (graded)
Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statements. Let’s start by getting an understanding of why the guidelines were developed in the first place? Who relies on the financial statements (external users)? What happens if an...
1563 words - 7 pages
1. Critical profitability analysis (Exhibit 1).Additional shortcomings omitted by Faulkner
Poor capital-budgeting decisions can be harmful to the Sugar Lake Refining and Processing Company as it will involve spending large amounts money to be recovered for a long time. Edwards & Ivancevich, (2011) demonstrate that the other harm would be the opportunity cost arising from not taking the opportunity and it turns that a competitor comes in. The worst effect is when poor budgeting decision is made and the firm ends up losing all or part of the invested monies simply because the proposed project did not realize the expected benefits. This can be demonstrated by concerns...
317 words - 2 pages
-Cash flows from owning a share of stock come in the form of future dividends
-Share of common stock with a constant dividend
-dividend grows at a steady rate
-Dividend growth model
-model that determines the current price of a stock by its dividend next period divided by discount rate minus the dividend growth rate
-If the growth rate is bigger than the discount rate, then the present value of the dividend gets bigger and bigger
-allows for supernormal growth rates over some finite length of time
-stocks expected cash dividend divided by its current price.
-similar to current yield on a bond
438 words - 2 pages
DAYS SALES OF INVENTORY-gives investors an idea of how long it takes a company to turn its inventory (including goods that are work in progress, if applicable) into sales. Generally, the lower (shorter) the DSI the better, but it is important to note that the average DSI varies from one industry to another.
-is a way to measure the average amount of time that it takes for a company to convert its inventory into sales. A relatively small number of days' sales in inventory indicates that a company is more efficient at selling off its inventory, while a large number indicates that a company may have invested too much in inventory, and may even have obsolete inventory on hand. However, a large...
894 words - 4 pages
WHEN TO ISSUE THE NONVOTING CLASS A STOCK
MLCM believed that market condition would deteriorate further during the week of October 5, and strongly recommended that Spiegel price the Class A shares in the next 48 hours or postpone the offering indefinitely. Now whether MLCM was right or not it will be judged by real option valuation. We showed the decision analysis by using both the FCF and the net cash flow. We have used three options such as a. Timing option, b. Decision Tree Analysis, and c. Option to Wait (Black Scholes Model).
|1. Timing Option |
We have used Timing Option to calculate the NPV if the stocks were issued immediately. Here we consider FCF in the...
922 words - 4 pages
Case 1- JetBlue Airways IPO Valuation
- Jing Zhang ( 23913134 )
A company issue stocks to generial public at its first time on a security exchange is call Initial Public Offering( IPO ). Initial Public Offering enable a company to raise capital from the public rather than private investors or institutions. IPO is considered as such a big deal for a company mainly because the company become a public corporation and have to be monitored by general pubic after IPO. Going public has bought about a considerable numbers of benefits. For instant, IPO increse the liquidity of capital and enable cheaper access to open market. Furthermore, going public enhance...
3730 words - 15 pages
The Accounting Information of System
The Personnel, procedures, devices, and records used by an organization to develop accounting information and communicate that information to decision makers
The accounting process
Accounting “links” decision makers with economic activities and with the results of their decisions.
Types of Accounting Information
Providing information about the financial resources, obligations, and activities of an economic entity that is intended for use primarily by external decision makers –...
797 words - 4 pages
EXERCISE WEEK 11
KEY STEPS FOR WRITING A BUSINESS PLAN AND PREPARING A BUDGET
This introductory exercise aims to introduce participants to the key steps in business planning and
budgeting and to work in groups to exchange ideas about the topics.
Your group will be required to present your budget in class.
You will be given around 5 minutes to present.
You are encouraged to use handouts and/or posters and/or role plays. You do not need to use
Each student must either prepare his/her own budget for the business (see step 3 below), and
have this ready to hand in at the start of class, or your group may hand in a...