Cash Flow – Cash Flow Notes

Loving Love asked:


What is some advice you would give someone if they had a problem with the low amount of money their partner is making/not making? This low income coming from that individual being lazy, unmotivated and directionless.

Todd

nemanja_nesic asked:


A company is considering a new marketing project. It will cost $2,530 and will generate $3,310 in nominal cash flows over 4 years. The company is enthusiastic about the $780 profit it will generate. Given the project’s cash flows and the company’s 9% required return … should the company pursue this project? Why/Why not?

Yr-1 Yr-2 Yr-3 Yr-4 total cash flow
300 410 1000 1,600 3,310

Ian Ogawa

think asked:


Can anyone please explain why we add back Gain on Sale for operating activities in the statement of cash flow?
Also, in my book, it says add amortization of investment to interest income to find out the amount of cash that actually receive from interest?
I don’t get it. Is amortization already include in interest income when we receive semiannually payment from bond? Should it be subtracted from interest income to find out the amount of cash?

Lisha Fahrni

jesse reed asked:


???

Lidia Leming

j. h asked:


dont want to take chances as i’m studying right now. thanks in advance

Arron Serban

=) asked:


1) The dividends paid exceed the net new equity raised
2) The net sale of common stock exceeds the amount of dividends paid
3) No income is distributed but new shares of stock are sold
4) Both the cash flow to assets and the cash flow to creditors are negative
5) Both the cash flow to assets and the cash flow to creditors are positive

Numbers Koutras

God’s grace asked:


The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. Cash flows are in $ thousands, and the corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year.

Year 0Year 1Year 2Year 3Year 4

Investment$10,000————
Sales revenue—$7,000$7,000$7,000$7,000
Operating costs—2,0002,0002,0002,000
Depreciation—2,5002,5002,5002,500
Net working capital 200250300200
(end of year)

Matthew Brittain

jesse reed asked:


??

Reva Volstad

Kent asked:


Let’s say Business X costs $3,000,000, with Revenues of 3,500,000 and EBITDA of $500,000. I assume out of this $500K I need to live, pay the debt service, pay taxes, etc. Can someone provide with a rough breakdown as to how much each of these things would be? Let’s say I live on $40K, how much can I pay down the debt each year?
Also, is “Cash Flow” typically an easy way to say EBITDA?

Lemuel Sangha

dukebball002 asked:


You are reviewing a proposed capital budgeting project that is expected to generate $10 million in sales for the next three years. Operating costs (excluding depreciation) are expected to account for 75% of sales, while the annual depreciation expense associated with the project is expected to be $2 million. Some of the funds required to take on this project were raised with debt which has resulted in the firm paying an additional $2 million per year in interest expense. If the firm’s corporate tax rate is 40%, what is the project’s expected annual operating cash flow?

Aaron Kitamura