Statement of Cash Flows ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics|Questions|Brief Exercises|Exercises|Problems| Concepts for Analysis| 1.|Format‚ objectives purpose‚ and source of statement.|1‚ 2‚ 7‚8‚ 12||||1‚ 2‚ 5‚ 6| 2.|Classifying investing‚ financing‚ and operating activities.|3‚ 4‚ 5‚ 6‚ 16‚ 17‚ 19‚24|1‚ 2‚ 3‚ 6‚ 7‚ 8‚ 12|1‚ 2‚ 10||1‚ 3‚ 4‚ 5| 3.|Direct vs. indirect methods of preparing operating activities.|9‚ 20|4‚ 5‚ 9‚ 10‚ 11|3‚ 4||5| 4.|Statement of cash flows— direct method
Premium Cash flow statement Generally Accepted Accounting Principles Balance sheet
Free Cash Flows Revised by C. Chang. Copyright 1996 by The McGraw-Hill Companies‚ Inc OUTLINE n n n n n n n What is FCF? FCFF? FCFE? How Do You Calculate FCFF? FCFF Calculation– the CFO Method FCFF Calculation– the EBIT Method Equivalence: FCFF(CFO) vs FCFF(EBIT) Free Cash Flow to Equity (FCFE) Free Cash Flow Example What is FCF? FCFF? FCFE? n Free Cash Flows to Firm (FCFF) n The cash produced by the business activities of a firm available for
Premium Generally Accepted Accounting Principles Cash flow Balance sheet
study: “Nucor Corporation: Competing Against Low-Cost Imports” Case on page C-193. Use the following questions to perform your case study. “Nucor Corporation: Competing Against Low-Cost Steel Imports” case 10 page C-193 case study Assignment Questions: 1. What are the primary competitive forces impacting U.S. steel producers in general and the producers like Nucor that make new steel products via recycling scrap steel in particular? Please do a five-forces analysis to support
Premium Steel Steelmaking Recyclable materials
from now. If the required return is 9 percent‚ what is the value of the investment? What would the value be if the payments occurred for 40 years? For 75 years? Forever? 2. Calculating Annuity Cash Flows. If you put up $25‚000 today in exchange for a 7.9 percent‚ 12year annuity‚ what will the annual cash flow be? 3. Calculating Perpetuity Values. Dawa Financial is trying to sell you an investment policy that will pay you and your heirs $35‚000 per year forever. If the required rate of return on this
Premium Cash flow Net present value Time value of money
statement and statement of cash flows used to make business decisions? The income statement reflects the company’s financial performance by showing how much money was generated (revenue)‚ how much was spent (expenses)‚ and the difference (profit) between the two over a period of time. It is divided into the operating and non-operating sections. It can also tell how much money shareholders would receive if the company were to distribute all of its net earnings. The cash flow statement provides cumulative
Premium Income statement Cash flow Time
Week 8 / Checkpoint The differences between direct and indirect that they involve the way Cash Flow are from operations of activities. This I do recall is the first part of the Cash Flow Statement. The differences are to each are to follow. Direct Presentation: involves the cash flows in which analyze the company results and uses of cash. There are three parts that report cash receipts and cash payments. These parts are operations‚ investments‚ and finance transactions. Operating transactions
Premium Cash flow Finance Income statement
stanAccounting Standard (AS) 3 (revised 1997) Cash Flow Statements Contents OBJECTIVE SCOPE BENEFITS OF CASH FLOW INFORMATION DEFINITIONS Cash and Cash Equivalents PRESENTATION OF A CASH FLOW STATEMENT Operating Activities Investing Activities Financing Activities REPORTING CASH FLOWS FROM OPERATING ACTIVITIES REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES REPORTING CASH FLOWS ON A NET BASIS FOREIGN CURRENCY CASH FLOWS EXTRAORDINARY ITEMS INTEREST AND DIVIDENDS TAXES ON INCOME
Premium Cash flow statement Balance sheet Asset
case study “Nucor in 2009”‚ Nucor’s business strategy can be categorized as cost leadership. There are clear evidence in the case that shows Nucor using an integrated set of actions to produce at the lowest cost‚ while still maintaining an acceptable level of quality compared to their competitors. In this critique‚ the Value-chain model will be used to illustrate how Nucor aligns their activities to this business strategy. I/ Primary structure Regarding Inbound Logistics‚ Nucor has a highly
Premium Costs Cost Management
of Cash flow * Cash flow is more “direct” as “profit” is highly dependent on accounting conventions and concepts/principles * Cash flow reporting satisfies the needs of all users better since cash flow is more direct with its messages. Some of the interested user parties are: * Creditors -repayment of debts‚ overdue accounts * Management -cash flow reporting provides the type of information which decision should be taken re: relevant costs ( decision based on future cash flow)
Premium Balance sheet Generally Accepted Accounting Principles Income statement
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
Premium Net present value Progressive tax Taxation