Cash Flow Statements - Indirect method – Reconciliation for Cash from Operations –from Accrual profit to Cash generated. Accrual profit recorded items below that did not involve Cash Action to derive Cash Explanations and reasons for adjustments necessary to derive Cash from Operations [Profit making activities] 1 Depreciation buildings Add back Non cash expense that reduced profit 2 Proceeds from sale of Asset deduct Non cash gain or profit that increased profit 3 Carrying amount of Asset sold
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Discounted Cash Flow Homework Problems Please post the answers (and show your work) in the assignments section by midnight the last day of the week assigned. 1. Calculate the future value of 1‚535 invested today for 8 years at 6 percent. (5 points) $1535 * 1.5938 = $2‚446 2. What is the total present value of the following cash stream‚ discounted at 8 percent? (5 points) |Year |Amount |Rate |PV | |1 | $ 400
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Principles of Management by Frederick Taylor 1. Develop a specific science for each job Management first needs to break each job into individual tasks and determine which steps don’t contribute to the end product. While I was working for a small manufacturing company‚ management decided that our department was due for an overhaul to streamline the work process and increase production. Our main job each day was to fill 80-100 bins with various parts. We walked about 10 miles on average each day
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BASIC PRINCIPLES OF THE CONSTITUTION Representative government: Selection of representatives in "free" and scheduled elections Governing with the consent of the governed Federalism: power-sharing between national‚ state and local government Historical pattern of increasing the powers of the national government at the expense of local autonomy Supreme Court’s role in ongoing debate over federalism: Early cases—McCulloch v. Maryland (1819)‚ Gibbons v. Ogden (1824) Selective Incorportation
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000 $16‚250 $23‚400 Expenses (4‚250) (8‚000) (8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875) (7‚125) (5‚325) (4‚575) After-tax cash flow 44‚625 40‚375 30‚175 525‚925 Discount factor (7%) .935 .873 .816 .763 Present value $(500
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sheet account balance. The big difference is the inability to record certain intangible assets for example: brand value‚ human capital… these assets would provide earnings growth in the future and as far as determine Microsoft’s market value. The company choose a conservative accounting policies. 2. What effect did Microsoft’s software capitalization policy have on its financial statements? a) 60% R&D Year 1995 1996 1997 1998 1999 R&D recognized 860 1‚326 1‚863 2‚601 2‚970 Adjustments
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2011-05-03 Basics of Management Classes for Bachelor Studies in Finance Janusz Marek Lichtarski‚ PhD. E-mail: janusz.lichtarski@ue.wroc.pl Projekt współfinansowany z Unii Europejskiej w ramach Europejskiego Funduszu Społecznego BASICS OF MANAGEMENT Management can be seen as: art – means that management require special characteristics‚ skills and attitudes. Manager as an artist sometimes should base on his intuition and talent practice – means that it is practical activity -
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applicable laws and regulations. These Conduct Principles apply to all IBM employees. However‚ they are not meant to describe the full scope of IBM human resource policies or practices. More detailed statements of policies‚ procedures and practices are contained in documents such as the IBM Business Conduct Guidelines. Employees are required to comply with all IBM policies‚ procedures and practices at all times and are responsible for consulting their management if they have any questions. Our goal is
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songs from our individual lists and mutually discussing the tenth song. The first song is Ring of Fire by Johnny Cash. Ashley Armitage chose this song‚ and with very good reason. Ring of Fire was released in April of 1963 and has lasted through the years. It was originally recorded by Anita Carter. There is some speculation about the original writer of the song‚ June Carter or Johnny Cash. Although the years go by‚ this song is still widely known and continues to be used in many different form in today’s
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Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows Richard S. Ruback* This paper presents the Capital Cash Flow (CCF) method for valuing risky cash flows. I show that the CCF method is equivalent to discounting Free Cash Flows (FCF) by the weighted average cost of capital. Because the interest tax shields are included in the cash flows‚ the CCF approach is easier to apply whenever debt is forecasted in levels instead of as a percent of total enterprise value. The CCF method retains
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