Question
OCF=EBIT+ Depreciation - Taxes =$10,537+3,229-1,850.94=$11,915.06 Change in NWC=NWC_(end )-NWC_(beg )=(CA-CL)_(end )-(CA-CL)_(beg ) =($57,971-10,765)-($52,764-10,326) =$4,768 Net capital spending =NFA_(cnd)-NFA_(bcg)+ Depreciation =$100,893-94,601+3,229=$9,521 Cash
OCF=EBIT+Depreciation - Taxes
=$10,537+3,229-1,850.94=$11,915.06\
Change in NWC=NWC_(end )-NWC_(beg )=(CA-CL)_(end )-(CA-CL)_(beg )\ =($57,971-10,765)-($52,764-10,326)\ =$4,768\
Net capital spending =NFA_(cnd)-NFA_(bcg)+ Depreciation \ =$100,893-94,601+3,229=$9,521\ Cash flow from assets
=OCF-Change in NWC - Net capital spending\
=$11,915.06-4,768-9,521=-$2,373.94\ Cash flow to creditors
=Interest - Net new LTD\ Net new LTD
=LTD
_(end )-LTD
_(beg )\ Cash flow to creditors
=$1,723-($45,798-37,778)=-$6,297\ Net new equity
=Common stock end - Common Stock
_(beg )\ Common stock + Retained earnings
=Total owners' equity\ Net new equity
=OEend
-(OE-RE)_(beg)\
=OE_(end )-OE_(beg )+RE_(beg )-RE_(end )\
RE_(od )=RE_(beg )+Additions to
RE_(2021)\
:.Net new equity Additions to (
:RE_(2021) Step by Step Solution
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The Handbook For Investment Committee Members
Authors: Russell L. Olson
1st Edition
0471719781, 978-0471719786
