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-------------------------------------------------------------------------------------------------------------------------------------------- Cash flow from assets = –�195,000 = OCF – Change in NWC – Net capital spending = OCF – (–�165,000) – 760,000 = –�195,000
Operating cash flow = –�195,000 – 165,000 + 760,000 = �400,000
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-------------------------------------------------------------------------------------------------------------------------------------------- Intermediate
11. a. The accounting statement of cash flows explains the change in cash during the year. The
accounting statement of cash flows will be:
Statement of cash flows Operations Net income ZW$125 Depreciation 75 Changes in other current assets (25) Total cash flow from operations ZW$175 Investing activities Acquisition of fixed assets ZW$(175) Total cash flow from investing activities ZW$(175) Financing activities Proceeds of long-term debt ZW$90 Current liabilities 10 Dividends (65) Total cash flow from financing activities ZW$35 Change in cash (on balance sheet) ZW$35 b. Change in NWC = NWCend – NWCbeg
= (CAend – CLend) – (CAbeg – CLbeg) = [(ZW$45 + 145) – 70] – [(ZW$10 + 120) – 60) = ZW$120 – 70
= ZW$50 c. To find the cash flow generated by the firm’s assets, we need the operating cash flow, and the
capital spending. So, calculating each of these, we find:
Operating cash flow Net income ZW$125 Depreciation 75 Operating cash flow ZW$200 Note that we can calculate OCF in this manner since there are no taxes.
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-------------------------------------------------------------------------------------------------------------------------------------------- Capital spending Ending fixed assets ZW$250 Beginning fixed assets (150) Depreciation 75 Capital spending ZW$175 Now we can calculate the cash flow generated by the firm’s assets, which is: Cash flow from assets Operating cash flow ZW$200 Capital spending (175) Change in NWC (50) Cash flow from assets ZW$(25) Notice that the accounting statement of cash flows shows a positive cash flow, but the financial
cash flows show a negative cash flow. The cash flow generated by the firm’s assets is a better number for analyzing the firm’s performance.
12. With the information provided, the cash flows from the firm are the capital spending and the change
in net working capital, so:
Cash flows from the firm Capital spending $(3,000) Additions to NWC (1,000) Cash flows from the firm $(4,000) And the cash flows to the investors of the firm are:
Cash flows to investors of the firm Sale of short-term debt $(7,000) Sale of long-term debt (18,000) Sale of common stock (2,000) Dividends paid 23,000 Cash flows to investors of the firm $(4,000)
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13. a. The interest expense for the company is the amount of debt times the interest rate on the debt.
So, the income statement for the company is:
Income Statement Sales ￡1,000,000 Cost of goods sold 300,000 Selling costs 200,000 Depreciation 100,000 EBIT ￡400,000 Interest 100,000 Taxable income ￡300,000 Taxes (35%) 105,000 Net income ￡195,000 b. And the operating cash flow is: OCF = EBIT + Depreciation – Taxes OCF = ￡400,000 + 100,000 – 105,000 OCF = ￡395,000
14. To find the OCF, we first calculate net income. Income Statement Sales Au$145,000 Costs 86,000 Depreciation 7,000 Other expenses 4,900 EBIT Au$47,100 Interest 15,000 Taxable income Au$32,100 Taxes 12,840 Net income Au$19,260 Dividends Au$8,700 Additions to RE Au$10,560 a. OCF = EBIT + Depreciation – Taxes OCF = Au$47,100 + 7,000 – 12,840 OCF = Au$41,260 b. CFC = Interest – Net new LTD CFC = Au$15,000 – (–Au$6,500) CFC = Au$21,500
Note that the net new long-term debt is negative because the company repaid part of its long- term debt.
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罗斯公司理财第二章：财务报表和现金流
