1 / 2

OCF = EBIT(1-T)+ Depreciation OCF = 30 000 – 8 000 + 3 000 OCF = 25 000 B) FCF = OCF – NFAI – NCAI

Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended December 31, 2005 Operating Cash Flow. Free Cash Flow. For the year ended December 31,. OCF = EBIT(1-T)+ Depreciation OCF = 30 000 – 8 000 + 3 000

phyllis-jefferson
Download Presentation

OCF = EBIT(1-T)+ Depreciation OCF = 30 000 – 8 000 + 3 000 OCF = 25 000 B) FCF = OCF – NFAI – NCAI

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Given the financial data for New Electronic World, Inc. (NEW), compute the following measures of cash flows for the NEW for the year ended December 31, 2005 Operating Cash Flow. Free Cash Flow. For the year ended December 31,

  2. OCF = EBIT(1-T)+Depreciation OCF = 30 000 – 8 000 + 3 000 OCF = 25 000 B) FCF = OCF – NFAI – NCAI NFAI = Change in fixedasset + Depreciation NFAI = (24 000 – 22 000) + 3 000 = 5 000 NCAI = Change in curr. A – Change in (Acc. Payable + Accruals) NCAI = (99 000 – 87 000) – (32 000 – 26 000) = 6 000 FCF = 25 000 – 5 000 – 6 000 = 14 000

More Related