Question
In: Finance
What are the equations for Cash flow from Assets? What is another word for Cash Flow...
What are the equations for Cash flow from Assets?
What is another word for Cash Flow from Assets?
Solutions
Expert Solution
Cash Flow from Assets measures the total cash outflow or inflow
from operations. It also measures the changes in cash flow through
capital spending and net working capital.
1. Cash flow from Assets = Operating Cash Flow - Capital spending
or changes in fixed assets - Additions to Net Working
capital
a) Operating Cash flow = EBIT + Depreciation - Taxes
b) Capital spending = Ending balance of net fixed assets -
beginning balance of net fixed assets + Depreciation or Ending
balance of gross fixed assets - Beginning balance of gross fixed
assets
c) Additions to Net Working Capital = Ending Net working Capital -
Beginning Net working capital
where, Ending Net Working Capital = Ending Current Assets - Ending
Current Liabilities
and Beginning Net Working Capital = Beginning Current Asset -
Beginning Current Liabilities
2) Another word for Cash flow from Assets is Cash Flow of
the Firm.
jeff jeffy answered 2 years agoRelated Solutions
What is the firm’s free cash flow (i.e., cash flow from assets) for 2017? Cash &
What is the firm’s free cash flow (i.e., cash flow from assets)
for 2017?
Cash
$423
Accounts
Receivable
15% of Total Revenue
Accounts
Payable
20% of Cost of Goods Sold
Notes
Payable
$800
Inventory
$2,900
Net Fixed
Assets
$14,800
Long-term
Debt
$3,500
Common
Stock
$10,000
Total
Revenue
$7,200
Cost of Goods
Sold
50% of Total Revenue
Depreciation
Expense
$1,200
Selling, General, & Administrative
Expense $1,000
Interest
Expense
10% of Long-term Debt
Income
Taxes
35% of Taxable Income
Cash Flow From Assets Problem: Calculate each step of the cash flow from assets based on...
Cash Flow From Assets Problem: Calculate each step of the cash
flow from assets based on the following information. Use the
examples in the presentation as a guide. Working Capital Accounts:
2015: Current Assets = 4,400; Current Liabilities = 1,500 2014:
Current Assets = 3,500; Current Liabilities = 1,200 Fixed Assets
and Depreciation: 2015: Net Fixed Assets = 3,400 2014: Net Fixed
Assets = 3,100 Depreciation Expense = 400 Long-Term Debt and
Equity: 2015: Long-Term Debt = 4,000; Common Stock...
What is the Cash flow from Assets? What is the OCF? What are the changes in...
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What is the OCF?
What are the changes in NWC?
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BALANCE SHEET - 2017 & 2018
ASSETS
LIABILITIES and OWNERS EQUITY
2017
2018
2017
2018
Current Assets
Current Liabilities
Cash
200
210
Accounts Payable
180
185
A/R
300
290
Notes Payable
230
195
Inventory
250
300
Total Current Liabilities
410
380
Total Current Assets
750
800
Long-Term Debt
245
255
Fixed Assets...
Calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders DATA ...
Calculate the cash flow from assets, cash flow to creditors, and
cash flow to stockholders
DATA
Balance Sheet:
2009
2010
Cash
$15,000
$14,000
Marketable Securities
6,000
6,200
Receivables
42,000
33,000
Inventory
51,000
84,000
Prepaid expenses
1,200
1,100
Total current assets
115,200
138,300
Gross plant and equipment
316,000
330,000
Less: accumulated depreciation
(30,000)
-60,000
Total assets
$401,200
$408,300
2009
2010
Accounts payable
$48,000
$57,000
Accruals
6,000
5,000
Notes payable
15,000
13,000
Total current...
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow...
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net
Capital Spending, Cash Flow from Assets, Cash Flow to Creditors,
and Cash Flow to Shareholders. Please show work and equations.
Balance Sheet
2015
2016
Income Statement
2016
Cash
5800
5820
Sales
26500
All Other Current Assets
4000
4910
Various Operating Expenses
11900
Net Fixed Assets
6600
9200
Depreciation Expense
1400
Current Liabilities
7200
8870
Interest Expense
920
Long-term Liabilities
5700
6940
Gain on Sale of Asset
1020
Common Stock
2500
3380
Taxable...
Cash Flow from Assets (also known as FCF), Cash Flow Identity/Equation, Change in NWC, and Financial Leverage.
Define these business finance terms in your own words and then
give a real world example of each.Cash Flow from Assets (also known as FCF), Cash Flow
Identity/Equation, Change in NWC, and Financial Leverage.
What will be the free cash flow if cash flow from operation is 850,000 , dividend...
What will be the free cash flow if cash flow from operation is
850,000 , dividend paid 20,000, cash recieved from sale of fixed
assets is 2000, purchase of new equipment of 5000. cash flow from
financing activity is 300,000.
please show the workings
A project is expected to generate cash flow from assets equal to $250,000 at the end...
A project is expected to generate cash flow from assets equal to
$250,000 at the end of the year. The cash flows are expected to
grow at 4% for the next 20 years. At the end of the 20 years, the
project will no longer be viable, but the company will be able to
sell off related equipment at an after tax salvage value of
$1,000,000. The cost of capital for this project is 8%. The company
is considering selling...
A project is expected to generate cash flow from assets equal to $250,000 at the end...
A project is expected to generate cash flow from assets equal to
$250,000 at the end of the year. The cash flows are expected to
grow at 4% for the next 20 years. At the end of the 20 years, the
project will no longer be viable, but the company will be able to
sell off related equipment at an after tax salvage value of
$1,000,000. The cost of capital for this project is 8%.
The company is considering selling...
Cash flow from assets. Use the data from the following financial statements in the popup window,...
Cash flow from assets. Use the data from the following financial
statements in the popup window,
LOADING...
. The company paid interest expense of
$ 17 comma 500$17,500
for
20172017
and had an overall tax rate of
40 %40%
for
20172017.
Find the cash flow from assets for
20172017,
and break it into its three parts: operating cash flow,
capital spending, and change in net working capital.
The operating cash flow is
$nothing.
Partial Income Statement Year Ending 2017
Sales...
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