Year 1 Year 2 -367.00 4721.00 1328.00 2231.00 1162.00 36.63 6.00% Interest yield 93.80 10.00% Interest cost 1104.83 276.21 25.00% Tax rate 828.62 Checks NCF - Change in cash = 0 A- (L+E) = 0 Net operating assets - Invested capital = 0 Method 1 - Method 2 = 0 Method 1 - Method 3 = 0 Enterprise cash flow + Financial cash flow = 0 Income statement Sales COGS SG&A = Operating income Interest income Interest expense = Earnings before tax Tax expense = Net income Depreciation in COGS and SG&A Ending balance sheet Current assets Cash Current receivables Inventories Non-current assets Long-term receivables Current liabilities Accounts payable to suppliers Note payable to the banks Non-current liabilities Long-term accrued warranties Long-term debt Equity Paid-in capital Retained earnings 0.00 427.00 943.00 761.00 794.00 1154.00 987.00 829.00 962.00 291.00 523.00 519.00 412.00 318.00 432.00 723.00 509.00 928.00 468.00 998.00 736.00 Balance sheet metrics Not useful Working capital: Current assets - current liabilities Net operating assets or the need for invested capital Current operating assets - Current operating liabilities = Current net operating assets or the need for operating working capital + Non-current operating assets - Non-current operating liabilities = Non-current net operating assets or the need for fixed capital = Net operating assets or the need for invested capital Source of invested capital Financial liabilities Less Financial assets = Net financial liabilities or net debt Equity = Invested capital Indirect US GAAP Cash Flows Net income -Change in operating working capital -Change in non-current operating assets other than PP&E and intangibles + Change in non-current operating liabilities + Depreciation and amortization = OCF - CapEx = ICF Change in principal portion of debt Change in capital (Dividends) = FCF = NCF Enterprise free cash flows Operating income after tax; NOPAT; EBIAT; EBIT*(1-tax); Unlevered or prefinancing net income - Change in net operating assets = Unlevered or enterprise free cash flow Operating income after tax; NOPAT; EBIAT; EBIT*(1-tax); Unlevered or prefinancing net income -Change in operating working capital -Change in non-current operating assets other than PP&E and intangibles + Change in non-current operating liabilities + Depreciation and amortization = OCF without interest CapEx (ICF without financial investments] = Unlevered or enterprise free cash flow YEAR 2 Enterprise Cash Flows Working capital Current operating assets [No - before the number.] Current operating liabilities [No - before the number.] Operating working capital Non-current operating assets [No - before the number.] Non-current operating liabilities [No - before the number.] Net operating assets Net debt Invested capital GAAP Operating Cash Flow GAAP Investing Cash Flow OPAT or EBIT*(1-tax) CapEx [Put - before the number.] Unlevered or enterprise free cash flow HII