statements‚ and cash budgets‚ are an integral part of financial forecasting. They show the results of assumed events rather than actual events. 3. Cash flows are the ultimate source of financial value. Therefore‚ cash flow analysis and forecasting are important parts of a firm’s financial plans. 4. After-tax cash flow is equal to earnings after tax plus noncash charges. 5. The statement of cash flows shows the effects of a firm’s operating‚ investing‚ and financing activities on its cash balance
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Company’s accounting records is as follows: o Cash paid to retired common shares Rs. 15‚000 o Proceeds from issuance of preferred shares Rs. 20‚000 o Cash dividends paid Rs. 8‚000 www.virtualinspire.com o Proceeds from sale of equipment Rs. 25‚000 On its cash flow statement for the year‚ SNT Company should report net cash flow from financing activities as: ►Rs. 3‚000 net cash inflow ►Rs. 3‚000 net cash outflow ►Rs. 8‚000 net cash inflow ►Rs. 8‚000 net cash inflow Question No: 4 ( Marks: 1 ) -
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the financial of company through financial statements because it gives detail in all kind of financial record to management. There are three financial statements (i.e. Profit and loss statement‚ balance sheet‚ and cash flow statement). Financial statements should be understandable‚ relevant‚ reliable and comparable. Profit and loss statement (income statement): it reports all incomes‚ expenses in order to calculate the profit of company in the period of time. It gives information for internal and
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Cash Budget Problem Answer the following questions using the information below: The following information pertains to Hepburn Company: Month Sales Purchases January $60‚000 $32‚000 February $80‚000 $40‚000 March $100‚000 $56‚000 ∙ Cash is collected from customers in the following manner: Month of sale 30% Month following the sale 70% ∙ 40% of purchases are paid for in cash in the month of purchase‚ and the balance is paid the following month. ∙ Labor costs are 20% of sales. Other
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.........................................4 Introduction........................................................................................5 Operating return on equity..................................................................5 Cash flow statement...........................................................................7 Investor ratios.....................................................................................8 Conclusion...........................................
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ASSESSMENT – BUSINESS PLAN…….. COVER SHEET BSBSBM404A……..…Undertake Business Planning BSBSBM406A……….Manager Finances WRRPM1B…………..Administer human resources policy BSBEBUS501A………Evaluate e-business opportunities WRRPM2B…………..Recruit and select personnel WRHSM501A………...Manage hairdressing services and sales delivery Assessor Assessor’s Signature : Result: Competent Not yet competent Comments: Name:
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in a consistent manner requires that project: I) cash flows be estimated in nominal terms II) cash flows be estimated in real terms III) accounting income be used: a. I only b. II only c. III only d. None of the above 4. Proper treatment of inflation in the NPV calculation involves: I) Discounting nominal cash flows using the nominal discount rate II) Discounting real cash flows using the real discount rate III) Discounting nominal cash flows using the real discount rates a. I only b. II
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Practice for Lecture 1: Basic Financial Analysis Question 1. Consider the following financial statements for SubMart Corp contained in the company’s most recent annual report filed with the OSC. SubMart Corp Balance Sheet‚ December 31‚ 2012 Assets Cash Accounts receivable Inventories Property‚ plant & equipment Less accumulated depreciation Total assets Liabilities & Equity Accounts payable Accrued expenses payable Long-term debt Common stock Retained earnings Total liabilities and equity 2010 2011
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BUSINESS FINANCE FAO: DIRECTORS‚ NATURALLY FRESH PLC CONTENTS Page(s) 1. Introduction 3 2. Required Rate of Return on Equity 3 3. Beta 3 4. Capital Asset Pricing Model 4 5.1 Limitations of CAPM 4 5.2 The APT Model 4 5.3 The Three-Factor Model 4 5.4 Required Rate of Return using APT or Three-Factor 5 Model 5. Bonds 5 6.5 How bond prices are determined
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system‚ which would allow the pair to sell beer on tap to their customers. The business owners must complete a thorough cash flow analysis of their planned investment using the concepts of operating cash flows‚ working capital investment and capital expenditures. They need to have a keen understanding of relevant versus non-relevant cash flows. Further‚ they must use these cash flows in order to come up with the net present value (NPV) and internal rate of return (IRR) of the investment under different
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