Cash Flow – Cash Flow Notes

SharpDr08 asked:


When a company has a good deal of Free Cash Flow, what is that mean?

Trevor Prosser

denverseven asked:


My homework question asks to classify the following events into cash flow from operations, investing or financing. I’m having trouble with the following ones:

1) Bought shares in another company for $200,000.
2) Over the year the company increased its overdraft at the bank $15,500.
3) December 31, paid $25,000 for six months interest expense on the bonds.

Thanks for all your help in advance

Christie Ciganek

bb_blanket asked:


[8 PTS] A student wants to move the entire positive cash flow to time 7 and see if an IRR can be found.

[A] No change: IRR is 15% (MARR)
[B] The IRR is higher than found in Problem 1.
[C] The IRR is lower than found in Problem 1.
[D] Dr. Yang said in class you cannot do so.
[E] Cannot decide as more than one IRR real root is found. (Select the best answer)

This is problem 1:
For the following cash flow compute the internal rate of return,
assuming 15% interest on external investments.
Do not transform the cash flow any more than is essential.

Year 0 Cash Flow $0
Year 1 Cash Flow $0
Year 2 Cash Flow $-20
Year 3 Cash Flow $0
Year 4 Cash Flow $-10
Year 5 Cash Flow $+20
Year 6 Cash Flow $-15
Year 7 Cash Flow $+100

Mason Keding

Curiousian asked:


i understand that we minus account receivable from net income since there are possibility that the customer might just not pay ,so we minus it from net income, but why inventory?

or did everytime we produce something and put it in inventory , we consider it as profit?
i’m really confuse here….

Thank you very much for your help !

Dierdre Leversee

bluejordann asked:


After working in the corporate world for 10 years, I have saved a good chunk of change.
I was thinking of getting out of the rat race and investing in real estate, and renting out condos, and living off of the cash flow.
Any other cash flow ideas, where I can live off of the cash flow, and move out of the concrete jungle?

Tory Elbogen

Meul Gulabsinh asked:


I have a net cash flow for 10 years and a capital outlay of 30M in year 0. Question also includes working capital of 10M in year 0 and additional 5M in year 3, with these recovered in the end of the project.

Should I include these when calculating payback or should i just use the capital outlay and net cash flows?

Grady Twedt

asked:


i need to know what bad cash flow is

Scott Emperor

asked:


I was wondering about purchasing this business but a little quick question that intrigued me. It shows their Sales Revenue is $111,840 and their Cash Flow is $26,916. So how much actual net income is the company making after all the expenses each year. Do you subtract the Cash Flow from the Sales Revenue to get the net income? I would think that the cash flow part is: paying bills, utilities, etc and that sales revenue of course would be from the services the company provides.

Lucilla Wegrzyn

hello asked:


Investing $220 in 1-year, $440 in 2-years, and $500 in 3-years. The discountrate, r is 12%. What is PV of cash flow, what is FV of cash flow, thanks!
what about future value? are they the same as present value?

Doreen Cunningham

J DUb asked:


Can someone show me how to calculate the Free Cash Flow step by step. I’m really lost and the formula makes little sense to me. Thank you

EBIT= 420,000
NI= 240,000
Change in FA= +30,000
Change in CA=+10,000
Change in Accounts Payable=+24,000
Change in Accruals=+3,000
Change in Notes Payable=+4,000
Depreciation= 15,000
Tax Rate= 40%

Donnell Roof