...P3-11. LG 4: Cash budget a. | Xenocore, Inc. ($000) | | Sept. | Oct. | Nov. | Dec. | Jan. | Feb. | Mar. | Apr. | Forecast Sales | $210 | $250 | $170 | $160 | $140 | $180 | $200 | $250 | Cash sales (0.20) | | | $ 34 | $ 32 | $ 28 | $ 36 | $ 40 | $ 50 | Collections | | | | | | | | | Lag 1 month (0.40) | | | 100 | 68 | 64 | 56 | 72 | 80 | Lag 2 months (0.40) | | | 84 | 100 | 68 | 64 | 56 | 72 | Other cash receipts | | | | | 15 | 27 | 15 | 12 | Total cash receipts | | | $218 | $200 | $175 | $183 | $183 | $214 | Forecast Purchases | $120 | $150 | $140 | $100 | $ 80 | $110 | $100 | $ 90 | Cash purchases | | | $ 14 | $ 10 | $ 8 | $ 11 | $ 10 | $ 9 | Payments | | | | | | | | | Lag 1 month (0.50) | | | 75 | 70 | 50 | 40 | 55 | 50 | Lag 2 months (0.40) | | | 48 | 60 | 56 | 40 | 32 | 44 | Salaries & wages | | | 50 | 34 | 32 | 28 | 36 | 40 | Rent | | | 20 | 20 | 20 | 20 | 20 | 20 | Interest payments | | | | | 10 | | | 10 | Principal payments | | | | | | | | 30 | Dividends | | | | | 20 | | | 20 | Taxes | | | | | | | | 80 | Purchases of fixed assets | | | | 25 | | | | | Total cash disbursements | | | $207 | $219 | $196 | $139 | $153 | $303 | Total cash receipts...
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...Table 3.5 Magna Fax, Inc. Income Statement For the Year Ended December 31, 2005 | Sales revenue | | $150,000 | Cost of goods sold | | 117,500 | Gross Profits | | $32,500 | Selling expense | 4,500 | | General and administrative expense | 4,000 | | Depreciation expense | 4,000 | | Operating profits | | $ 20,000 | Interest expense | | 2,500 | Net profit before taxes | | $ 17,500 | Taxes (40%) | | 7,000 | Net profit after taxes | | $ 10,500 | Magna Fax, Inc. Balance Sheet For the Years Ended December 31, 2004 and 2005 | | | 2004 | | 2005 | Assets Cash | | $24,000 | | $21,000 | Accounts receivable | | 45,000 | | 39,000 | Inventory | | 30,000 | | 27,000 | Gross fixed assets | $42,000 | | $40,000 | | Acc. Depreciation | 22,000 | | 18,000 | | Net fixed assets | | 20,000 | | 22,000 | Total assets | | $119,000 | | $109,000 | Liabilities and Equity | | | | | Accounts payable | | $25,000 | | $30,000 | Notes payable | | 50,000 | | 40,000 | Accruals | | 1,000 | | 2,000 | Longterm debts | | 10,000 | | 8,000 | Common stock at par | | 1,000 | | 1,000 | Paidin capital in excess of par | | 4,000 | | 4,000 | Retained earnings | | 28,000 | | 24,000 | Total liabilities and equity | | $119,000 | | $109,000 | 5. The credit manager at First National Bank has just received the income statement and balance sheet for Magna Fax, Inc. for the year ended December 31,2005. (See...
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...REPORT ON Cash flow analysis of BEXIMCO SYNTHETICS LIMITED Date of Submission: 20/04/2013 Submitted to: Pallab Kumar Biswas Dept. of Accounting & Information Systems University of Dhaka. Submitted by: Rashmin Ridita Dept. of Accounting & Information Systems BBA 16TH BATCH Roll ‐16076 Section‐A Letter of Transmittal To Pallab Kumar Biswas Dept. of accounting & information systems University of Dhaka Subject: Submission of report on analysis of cash flow statements Dear Sir, Enclosed is the report you requested to prepare on cash flow statements on the financial report of BEXIMCO SYNTHETICS LIMITED. This report contains the following particulars • it contains the analysis of financial statements. • ratios of different point of view are shown here • It also shows the comparative analysis of the income statements • It shows the application of different theories(du point analysis, z‐score) I have collected the information from the annual report published that is published yearly. Thank you for giving us the opportunity to prepare this report. I appreciate the chance to apply my knowledge for conducting the research and preparing this report. This whole task broadens our outlook and refines our knowledge of this working capital management course. Sincerely yours, Rashmin Ridita ID‐16076 TABLE OF CONTENT Introduction ...
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...Cashflow Statement Paper Teresita Napalan ACC/421 April 25, 2013 Stephen Russell The statement of cash flows is an essential financial statement in the accounting industry. It is one of four principal financial statements required by GAAP. The primary purpose of the statement of cash flows is to provide relevant information about the cash receipts and cash payments of a business during a period. The statement indicates why cash (including short-term investments that are equivalent to cash) changed during the period by reporting net cash provided or used by operating activities, investing activities, and financing activities. This paper will discuss the direct method and indirect method of the statement of cash flows and will also discuss the different sections for the statement of cash flows and how it assists a variety of different users. The statement of cash flows reports cash flows in the following categories: Operating activities which are transactions which affect net income, Investing activities which are transactions that affect investments in fixed assets such as property, plant and equipment, and finally Financing activities which affect the equity and debt of the business. The user assisted most by the operating activities would most likely be accounts payable. This section of the cash flow statement includes cash payments such as inventory, payroll, taxes, interest utilities and rent. The net amount of cash provided (or used) by operating activities is the key figure...
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...a) Functions or uses of the cash flow statement: * Provides a clear picture of an aspect of the entity’s performance and position that is not so clear in reviewing the P/L and B/S. ie * viability of core operations * payments to suppliers, creditors * collections on debtors * dividends, interest and other payments * payments for NC assets * access to cash, likely access in the future * profit does not equal cash, so adds another aspect to the information we can obtain about an entity * generally, users have an interest in cash flow performance, as this generally gives some indication of expected return (ie. dividends) * the importance of cash for survival is known, hence the CFS gives some indication of the future prospects for the firm * CFS gives some indication of the firm’s command over economic resources and how that command was exercised * Helps management to discharge its accountability function, by indicating how it has used the cash under its control. b) reasons for the reconciliation: * profit does not equal cash flow, hence the information content of the reconciliation * provides an explanation of some *(non-cash) aspects of profit such as: impact of depreciation, credit sales etc, * cash may be the ‘lifeblood’ of the company, but CFS should supplement, not substitute for the P/L. * May, to some extent assist users to understand that there is a relationship between profit and cash...
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...CHAPTER 6 STATEMENT OF CASH FLOWS Questions, Exercises, and Problems: Answers and Solutions 6.1 See the text or the glossary at the end of the book. 6.2 One can criticize a single income statement using a cash basis of accounting from two standpoints: (1) it provides a poor measure of operating performance each period because of the inaccurate matching of revenues and expenses (see discussion in Chapter 4), and (2) it excludes important investing (acquisitions and sales of long-lived assets) activities and financing (issuance or redemption of bonds or capital stock) activities of a firm that affect cash flow. 6.3 Accrual accounting provides a measure of operating performance that relates inputs to outputs without regard to when a firm receives or disburses cash. Accrual accounting portrays the resources of a firm and the claims on those resources without regard to whether the firm holds the resource in the form of cash. Although accrual accounting may satisfy user’s needs for information about operating performance and financial position, it does not provide sufficient information about the cash flow effects of a firm’s operating, investing, and financing activities. The latter is the purpose of the statement of cash flows. 6.4 The statement of cash flows reports changes in the investing and financing activities of a firm. Significant changes in property, plant, and equipment affect the structure of assets on the balance sheet, for example, the age of the assets....
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...SUCCESS QUOTES Your Ultimate Inspirational Guide By Patric Chan “Enrich Your Mind, Unleash Your Potential. Success Begins Within You.” http://www.esuccessmastery.com * Anthony Robbins * Dale Carnegie * Dr. Stephen Covey * Brian Tracy * Jim Rohn * * Napoleon Hill * Mark Victor Hansen * Robert Kiyosaki * Brought to you by : Noel Hynes http://ebookdirectory.com Congratulations on taking the first step toward achieving success!! Why I wrote and compiled this ebook ... Because I know how you feel. The burning desire for success and the determination you have to achieve it. The rich knowledge and resources provided in this ebook had been read personally by me, and I had benefited from it. I guess, all the featured successful men in the ebook don’t have to be introduced anymore as I’ll assume that you would have heard of them. If you do not know about them yet, just type their name in the search engine and you will find them. I will only recommend authors and coaches whom I know from my personal experience who are successful and inspirational. If you sell the product in which you believe in or you have benefited from personally, you will be a very successful person. I’ll always prefer to promote the products/services that I had used, reviewed, joined or read before. We live in abundance of wealth today. There is no limit to our earnings; we have the capacity to earn extraordinary income if we are determined to achieve it. What is most important is how we deliver our...
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...Cash Flow Statement Definitions A financial statement that reflects the inflow of revenue verses the outflow of expenses resulting from operating, investing and financing activities during a specific time period. Cash flow statements and projections express a business's results or plans in terms of cash in and out of the business, without adjusting for accrued revenues and expenses. The cash flow statement doesn't show whether the business will be profitable, but it does show the cash position of the business at any given point in time by measuring revenue against outlays. Cash flow is determined by looking at three components by which cash enters and leaves a company: core operations, investing and financing. Operations- Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a company's products or services. Generally, changes made in cash, accounts receivable, depreciation, inventory and accounts payable are reflected in cash from operations. Investing- Investing activities focuses on the purchase of the long-term assets a company needs in order to make and sell its products, and the selling of any long-term assets. It reports changes in equipment, assets or investments relate to cash from investing. Financing- Financing activities include the inflow of cash from investors such as banks and shareholders, as well as the outflow of cash to shareholders as dividends as the...
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...20/09/2011 4.1 The Timeline Chapter 4 The Time Value of Money • A timeline is a linear representation of the timing of potential cash flows. • Drawing a timeline of the cash flows will help you visualize the financial problem. Copyright © 2011 Pearson Education. All rights reserved. Copyright © 2011 Pearson Education. All rights reserved. 4-2 4.1 The Timeline (cont’d) • Assume that you made a loan to a friend. You will be repaid in two payments, one at the end of each year over the next two years. 4.1 The Timeline (cont’d) • Differentiate between two types of cash flows – Inflows are positive cash flows. – Outflows are negative cash flows, which are indicated with a – (minus) sign. Copyright © 2011 Pearson Education. All rights reserved. 4-3 Copyright © 2011 Pearson Education. All rights reserved. 4-4 1 20/09/2011 4.1 The Timeline (cont’d) • Assume that you are lending $10,000 today and that the loan will be repaid in two annual $6,000 payments. Textbook Example 4.1 • The first cash flow at date 0 (today) is represented as a negative sum because it is an outflow. • Timelines can represent cash flows that take place at the end of any time period – a month, a week, a day, etc. Copyright © 2011 Pearson Education. All rights reserved. 4-5 Copyright © 2011 Pearson Education. All rights reserved. 4-6 Textbook Example 4.1 (cont’d) 4.2 Three Rules of Time Travel • Financial decisions often require combining cash flows...
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...El cuadrante a su vez se divide en dos lados: Lado izquierdo y lado derecho. Del lado izquierdo se encuentran los empledos y autoempleados, y del lado derecho los dueños de negocio y los inversionsitas. Una misma gente puede ocupar, de acuerdo a la forma en que obtiene sus ingresos, más de un cuadrante e incluso los 4, pero de donde obtenga la mayoría de sus ingresos define su futuro. La gente del lado izquierdo NO LOGRARA su independencia económica, mientras que la gente del lado derecho si lo hará. La gente del lado izquierdo trabajará siempre para tener dinero, y la gente del lado derecho pondrá a trabajar su dinero. La mayoría de la gente cae en el primer cuadrante, es decir, trabaja para que otro gane dinero. Un artículo que nos dice porque no debemos estar en ese cuadrante es el siguiente: 10 razones para no conseguir un trabajo Ahora, otra gente decide no trabajar para nadie más y emprende, creyendo que pone un negocio, cuando en realidad es un autoempleo. Ya no trabaja para otra gente, pero sigue trabajando por dinero y no logrará tener independencia económica. Son el vendedor, contador, cobrador, diseñador, etc. Ellos son el negocio, y si ellos no trabajan, el negocio no genera ingresos. La gente que esta en Autoempleo debe evolucionar hacia Dueño de negocio, es decir, debe lograr que el negocio funcione aún cuando el no esté. Para ello debe aprender a confiar en otras gentes, documentar su experiencia y crear manuales, invertir en tecnología que ahorren tiempo...
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...Hey Simon, As requested, kindly find below: 1. What capital are you guys looking at operating=2.5m 2. What are the sources=loan from directors is it members contribution or loan and how much is it=2.5m, 3. Give me some of the expenses like office expenses that we need to include in the projections: This is an example of what we used for September: MONEY OUT Date Use 12/09/2015 4,000.00 new lock and labour 18/09/2015 3,510.00 office essentials 19/09/2015 190.00 easy chrome hooks 19/09/2015 5,000.00 IT solutions 19/09/2006 30.00 banking charges 14/05/1901 500.00 petroleum 21/09/2015 14,000.00 lunch and fare for panellist for two days 28/09/2015 9,000.00 deposit techhub for design 28/09/2015 4,500.00 engraved plate and rubber stamp 28/09/2015 30.00 banking charges 28/09/2015 3,993.00 office essentials 29/09/2015 500.00 design from incredible signs 29/09/2015 200.00 transport to itax centre railways 30/09/2015 6,000.00 daima management consultant ...
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...Chapter 3 CASH FLOWS AND FINANCIAL ANALYSIS FOCUS The first half of the chapter is focused on cash flow in business. The emphasis is on understanding where cash comes from, what it's used for, and how to get that information out of financial statements. The second half of the chapter deals with financial analysis. A series of ratios are presented along with discussions of the kinds of problems they're designed to illuminate. Practical issues like the interpretation of a long collection period are considered in detail. PEDAGOGY Cash Flows: Students often find cash flow confusing, so extra care is taken to develop the ideas carefully starting with examples from personal life. After mastering the basic concepts, we move into business applications. Ratio Analysis: It's difficult to get students without business experience to appreciate ratio analysis. They calculate ratios readily enough, but have a hard time imagining what a particular comparison or trend implies about operations. For this reason we've spent extra time on the interpretation and implications of ratios. The comprehensive problem at the end of the chapter (problem 15) is designed to drive the interpretation ideas home. We suggest that you lecture on the material and assign the problem to be gone over in class after students have wrestled with it themselves. The numbers are straightforward, but you can get a lot of mileage out of having the students role play the analyst and propose possible...
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...In modern market economy, no matter creditors, stock shares, managers or other information user, focus on the cash flow and the creating cash capacity of enterprise. The statement of cash flow has become one of the main financial statements of every enterprise. Because the statement of cash flow demonstrates the ability of creating net cash flow of enterprises and reveals the liquidity of enterprise’s asset more clearly, helping the users provide object evaluation of overall financial situation. However, a series of simple initial data which statement of cash flow offered still not helpful for decision directly. Therefore, according to the analysis of cash flow statement, which can understand the company’s money flows in, flow out and balance situation, realize the main methods of cash flow out and where enterprises cash flows in. The cash flow statement is intended to provide information on a firm's liquidity or solvency, in order to provide a clear understanding of a company's financial resources at special period. Through the problems found out from financial aspect, promotes the manager understand the operating situation more sufficiently, thus offer the abundant, effective basis for its science decision. TThe cash flow statement has three sections:Operating, Investing and Finance. The cash flow statement was originally known as the flow funds statement or statement of changes in financial position. Operating Activities The operating activities are related to the incoming...
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...The Income Statement. It shows a business’s sources of income as well as the expenses it has incurred over a given time period that is being examined. The difference between the total incomes of the business and its expenses gives its net profit. The main aim of a business is to maximize its profit. The importance of an income statement therefore is to help in making an analysis of how the different decisions the business makes affect its level of profitability. The Cash flow Statement. It is a record of the amount of cash flowing in and out of a business over a given time period being examined. The statement is important to a business since it shows the ease by which a business can create an adequate level of liquidity or cash to finance its running operations. It also helps determine the amount of money available at the end of the business’s financial period which may be used for a subsequent period’s investment. Advantages of the income and cash flow statements. One advantages of the income and cash flow statement they are used to measure the level of performance of the business. Increased levels of profit derived from the income statement and an increased level of cash flows as shown by the cash flow statement are taken to mean that the business is performing well. The vice versa is also true. Another advantage is that both statements are also used by the management to evaluate the trend of the business by comparing its performance in the current financial...
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...Homework on Relevant Cash Flow Calculations: (20 Points) Question 1: A Mini-case on Estimation of Cash Flows (8 Points) A firm is considering replacing an old machine at a cost of $110,000. The new machine will to last five years with zero salvage value. It will generate expected annual cost savings of $30,000. The current machine will last for another 10 years. The discount rate is 10 percent. Assume that tax rate is zero and the present machine is fully depreciated with a zero salvage value. A. Should the firm replace the old machine? Show NPV calculations. (2 Points) | | |T=0 |T=1 |T=2 |T=3 |T=4 |T=5 | |1 |Cash Flow |(110,000) | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 | |3 |NPV |3,721 | | | | | | B. Assume that existing equipment was bought for $80,000 five years ago and is being depreciated on a straight line over ten years towards a zero book value. It continues to have zero salvage value. Should the firm replace the machine? (No calculations are necessary). Limit your answer to 20 words or less. (2 Points) As tax rate is Zero hence the Loss of Depreciation (Tax Shield) of Old machine and the tax shield due to Depreciation on New machine have no effect of the relevant cash inflow related...
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