Beruflich Dokumente
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Financial Planning
Group 3Aquino, F
Daguro, KC Ramos,
Financing Activities
This section of the
cash flow
statement reports
changes in
balances of the
long-term liability
and stockholders'
equity accounts
Direct method
Lowry Locomotion
Statement of Cash Flows
For the year ended 12/31/xx
Cash flows from Operating Activities
Cash receipts from customers
$45,800,000
(29,800,000)
(11,200,000)
4,800,000
Interest paid
(310,000)
(1,700,000)
$2,790,000
(580,000)
1,000,000
500,000
(10,000)
Dividends paid
(450,000)
1,040,000
3,360,000
1,640,000
$5,000,000
indirect method
Brothers Q
Statement of Cash Flows
For the year ended 12/31/xx
Cash flows from Operating Activities
Net income
$3,000,000
Adjustments for:
Depreciation and Amortization
125,000
20,000
(65,000)
80,000
(250,000)
Decrease in Inventories
325,000
(50,000)
25,000
3,105,000
(500,000)
35,000
(465,000)
150,000
175,000
Dividends paid
(45,000)
280,000
2,920,000
2,080,000
$5,000,000
Direct Method
Reveals
operating cash
receipts and
payments
Indirect Metho
everything recorded
as an expense was
a cash payment
Income Statement
Operatin
g
Activities
Financin
g
Activities
Operating
Inflows:
Activities
Sales to customers, Interest and Dividends
received
Outflows:
Purchase of inventory, Salaries and other
operating expenses, Income taxes and
Investing
Interest on debt
Activities
Inflows:
Sale of long-lived assets and investment
securities
Outflows:
Purchase of long-lived assets and
investment securities
Financing Activities
Inflows:
Sale of shares to owners, borrowing from
creditors through notes, loans, mortgages
Outflows:
Dividends distributed, repayment of
principal of debt, reacquisition of shares
o
p
Im
n
a
rt
!
!
t!
To shareholders - dividends
Attracted to
Suppliers
companies that
Creditors
produce plenty of
Investors
cash inflow
FCF
Depreciation
EBIT(1-T)
FCF=
+
][
and Amortization
Capital
Net Operating
- Expenditures
+ Working Capital
Depreciation
EBIT(1-T)
FCF=
+
][
and Amortization
Capital
Net Operating
- Expenditures
+ Working Capital
2015
P10,000
P80,000
Accounts Receivable
375,000
315,000
Inventories
615,000
415,000
P1,000,000
P810,000
Accounts Payable
P60,000
P30,000
Notes Payable
110,000
60,000
Accruals
140,000
130,000
Total Current
Assets
Depreciation
EBIT(1-T)
FCF=
+
][
and Amortization
Capital
Net Operating
- Expenditures
+ Working Capital
[(383,800-100,000)(1-0.40)] + 100,000
First Bracket:
= P270,280
Depreciation
EBIT(1-T)
FCF=
+
][
and Amortization
Capital
Net Operating
- Expenditures
+ Working Capital
{400,000 + [800,000-650,000]}
Second Bracket:
= P550,000
Depreciation
EBIT(1-T)
FCF=
+
][
and Amortization
Capital
Net Operating
- Expenditures
+ Working Capital
FCF=
P270,280-P550,000
FCF= P279,720
The End
=D
Group 3Aquino, F
Daguro, KC Ramos,