Cash Flow Preparation FIN/200 September 8‚ 2011 Axia College of University of Phoenix WEEK 1 ASSIGNMENT – CASH FLOW PREPARATION 1. Prepare a statement of cash flows for the Widget Corporation. Follow the general procedures indicated in Table 2–10. ___________________________________________________________________ WIDGET CORPORATION Income Statement For the Year Ended December 31‚ 2008 Sales $2‚200‚000 Cost of goods sold 1‚300‚000 Gross profits 900‚000 Selling and administrative
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Why learning English is important in today’s world? As it has been suggested time and again that English has emerged as one of the most prominent global languages‚ the importance of English would be elucidated in this write-up. With the concept of global village emerging and spreading like wildfire and the significance of English securing an all time high it becomes important to learn English. Why should we learn English? We should learn English because the majority
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CFO>Capex? 4. CFO>Capex + Dividends 5. Excess Cash 6. Source of cash to pay Capex and/or Dividends 7. Were working capital accounts other than cash and cash equivalents primary sources of cash or users of cash? 8.What other major items affected cash flows? 1991 1. Major sources of cash are cash received from customers and proceeds from the issuance of common stock. Major uses of cash are cash paid to suppliers and employees and increase of accounts
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Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea December 19th‚ 2009 Contents Objectives 1 Management Summary 1 Financial Health 1 Financial Forecast for 2002 and 2003 3 Key Driver Assumptions 5 Star River WACC 5 Free Cash Flows of the Packaging Machine Investment 7 Appendices 7 i. Objectives This report seeks to answer the following five questions about Star River Electronics Ltd.: 1. Assess the current financial health and recent financial performance of
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Project Cash Flows 12-1. Captain’s Cereal’s new Crunch Stuff n’ Stars is expected to generate $25M in sales. However‚ 20% of that will be cannibalized from the original cereal‚ Crunch Stuff. Thus‚ the sales amount that should be allocated to the new Stars version is only (100% − 20%) of the $25M‚ or $20M. This is an example of finding an “incremental” cash flow. As shown in equation 12-1‚ we only want to consider what is different if we go ahead with the project: incremental project cash flows = firm
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Cash Flow Preparation 27) Cash Flow Preparation CROSBY CORPORATION Income Statement for the Year Ending December 31‚ 2008 Cash flows from operating activities: Net income: $160.000 Adjustments to cash flow from operating activities Depreciation (re-added) $150‚000 Increase in inventory $20‚000 Decrease in already paid expenses ($20‚000) Increase in accounts payable $210‚000 Decrease in accrued expenses $20‚000 Total adjustments $380‚000 Net cash flow from operating activities $160
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contract manufacturers less incremental Stryker manufacturing costs Operating income from project less architect and engineering fees pre-tax income less taxes at 36% After-tax income add back Building depreciation add back Equipment depreciation add back It & other equipment depreciation Subtotal plus NCW Savings Subtotal Cash Flow Terminal Value‚ at book value Hurdle rate Discount factor at 15% PV of Cash Flows Sum‚ PV of Cash Flows & Terminal Value (BV Less 3 Initial Investments: 1. Building 2. Capital
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Robert Montoya‚ Inc. (A) Case 3 Robert Montoya‚ Inc.‚ is a leading producer of wine in the United States. The firm was founded in 1950 by Robert Montoya‚ an Air Force veteran who had spent several years in France both before and after World War II. This experience convinced him that California could produce wines that were as good as or better than the best France had to offer. Originally‚ Robert Montoya sold his wine to wholesalers for distribution under their own brand names. Then in the early
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incremental cash flow. These lost sales are included because they are a cost (a revenue reduction) that the firm must bear if it chooses to produce the new product. b. Yes‚ expenditures on plant and equipment should be treated as incremental cash flows. These are costs of the new product line. However‚ if these expenditures have already occurred (and cannot be recaptured through a sale of the plant and equipment)‚ they are sunk costs and are not included as incremental cash flows.
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March 1‚ 2012 Farookh Syed Caledonia Products Integrative Problem 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? Ans: When analyzing whether to undertake a project‚ Caledonia needs to focus on free cash flows opposed to the accounting profits because free cash flows is revenue that can be used or reinvested in similar or future projects because it is money that has been received
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