Pro Forma Cash Flow Budget

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    Investment Decision and Cash Flows

    DECISION AND CASH FLOWS A positive net present value (NPV) is a direct estimate of value creation for shareholders and is an operational way of carrying through on the strategy of trying to maximize shareholder wealth. To calculate NPV, however we need to estimate the cash costs and benefits of any decision at hand. In this note we discuss the evaluation of investment proposals. Cash Flows: Basic Concepts The cash flows that we will use in our analysis are incremental after-tax cash flows. The incremental-cash-flow

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    The Cash Flow Budget

    This is a prediction of future cash receipts and expenditures for a particular time period. It usually covers a period in the short term future. The cash flow budget helps the business determine when income will be sufficient to cover expenses and when the company will need to seek outside financing. In its simplest form, cash flow is the movement of money in and out of a business. It could be described as the process in which a business uses cash to generate goods or services for the sale to its

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    Cash Budget

    April($000) | Receipts | | | | Credit Sales | 2071 | 1957 | 2023.5 | Cash Sales | 268 | 245 | 207 | Payment | | | | Credit Purchase | 1745.25 | 1384.5 | 1365 | Overhead Expends | 266 | 296 | 236 | Salary and Wages | 456 | 496 | 476 | New Van | | | 126 | Tax | | 185 | | Net Cash Flow | | 25.5 | 153.5 | Bank Balance At The Start | 286 | | | Bank Balance At The End | | | | Cash Budget I agree with the statement that “budgeting is a key component in management

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    Cash Flow

    Reasons for decline in cash during a profitable year: • The Income statement includes only the revenues earned and expenses incurred by the business in its course of operations during the period. • The net income does not take into account the cash receipts and cash payments made. • One of the reasons for the difference is on account of increase in accounts receivables ($50,000) which indicates that cash received from customers was lower than the amount of sales included in the income statement

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    Cash Flow

    CONCEPTS a. The statement of cash flows details the actual cash generated through a specific time period, usually for fiscal year ending 20XX, for example. The cash flow statement, specifically, identifies the actual cash flowing in and out of the company and reveals how a company spends its money. Conversely, the income statement is based on the accrual method of accounting and will contain revenue, for example, that has not been received or expenses that have not yet been paid. b. The

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    Pro Forma Statements

    Quinniece Garrett Individual: Pro Forma Statements Comprehensive Problem: Landis Corporation The Landis Corporation had 2008 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows: Percent Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5% Accounts receivable. . . . . . . . . . . . . . . . . . . . . . 15 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Net fixed assets . . . .

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    Analyzing Pro Forma Statements

    Analyzing Pro Forma Statements FIN/571 Kalena Armstrong-Henry November 4, 2013 Analyzing Pro Forma Statements General and financial managers can both benefit from forecasting financial statements. Proforma statements assist financial managers to plan accordingly, in terms of the company’s financial needs. How much financing is needed and when it is needed can be determined by acquiring an estimate of the company’s future balance sheet accounts and income statement. Hence, the purpose of

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    Cash Flow

    Cash Flow Greg George December 7, 2013 Cash flow statements are important for every business. Cash flow statements tell investors, banks, and the company’s management what is going on with the company’s cash. Investors want to know if a company can and if they have paid dividends and a cash flow statement can provide this kind of information. When banks look at giving a loan to a company they look at a lot of different statements and on of them is the cash flow statement. From a cash

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    Cash Flow

    letter. - Verify the calculation equity method income.   d. Audit Procedures that should be undertaken about classification; -Study written records of investment strategies. - Review instructions to portfolio managers. -Study the company’s cash flow forecasts. -Determine the company’s financial position, working capital requirements.   e. Fair market value about the portfolio; - Determine whether the securities are actively traded in a broad market. - Obtain published market quotations

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    Cash Flow

    Chapter 12 Cash Flow Estimation and Risk Analysis LEARNING OBJECTIVES After reading this chapter, students should be able to: • Discuss difficulties and relevant considerations in estimating net cash flows, and explain the four major ways that project cash flow differs from accounting income. • Define the following terms: relevant cash flow, incremental cash flow, sunk cost, opportunity cost, externalities, and cannibalization. • Identify the three categories to which incremental

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    Cash Flow

    of Phoenix Cash Flow XACC/ 291 04/25/14 It is very important for companies to prepare statements of cash flow because it is very important for both internal and external use. External use means investors, lenders, creditors and banks. According to the chapter a “The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from operating, investing, and financing activities during a period. The information in a statement of cash flows should help investors

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    Cash Flow

    Jim DeMello Case 1- Signal Cable Company; Cash Flow Analysis Case 2- Bigger Isn't Always Better; Financial Ratio Analysis Case 3- Playing the Numbers Game!; DuPont Analysis Case 4-Growing Pains; Financial Forecasting Case 5- There’s More to Us Than Meets the Eye!; Financial Analysis and Forecasting Case 6- Lottery Winnings-Looks Can Be Deceptive; Time Value of Money Case 7- It’s Better Late Than Never!; Retirement Planning Case 8- Paying Off That Dream House; Loan Amortization

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    Cash Flow

    the departments at the same place assists the smooth, orderly and systematic flow of work. The various departments are connected by a central passageway, that not only facilitates the movement of people and goods, but also houses the inventory (raw material, work in process, finished goods). The inventory levels were not that high in my opinion. The production process is continuous but work is done batch wise. As work flows from one department to another, it contains labels and production identification

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    Cash Flow

    1)INTRODUCTION i) Statement of problem:- Cash flow statement is a statement which describes the inflow and out flows of cash and cash equivalents in an enterprise during a specific period of time. Such a statement enumerates net effects of the various business transactions on cash & its equivalents and takes in to account receipts and disbursement of cash. Cash flow statement summaries the cause of changes in cash position of a business enterprise between dates of two Balance

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    Analyzing Pro Forma Statements

    Inc: Analyzing Pro Forma Statements Karen E. Estremera Pizarro University of Phoenix FIN/571 - Foundations of Corporate Finance June 23, 2014 Prof. Victor Mojica – Rivera Analyzing Pro Forma Statements Pro Forma Statements are financial statements that a company prepares to consider the effects of potential activity (Pro Forma Statement, 2013). It is a financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements

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    Pro Forma

    2. I/S Pro Forma 2 1.1 Interest Income 2 1.2 Net Interest Income Margin 2 1.3 Provision for Loan Losses 5 1.4 Net Income Margin 6 1.5 Tax Rate 6 1.6 Non-interest income and Non-interest expense 7 3. B/S Pro Forma 8 3.1 ROA and ROE 8 3.2 The Accounts change according to the Interest Income and Interest Expense 9 3.3 The Other Asset and Liability Accounts 11 3.4 Shareholders’ Equity Forecast 12 3.5 Retained earnings 13 4. Cash Flow Statement Pro Forma 15

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    Personal Budget, Balance Sheet, and Cash Flow Statement

    Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 Memorandum To: Mr. From: Mr. Subject: Personal Budget, Balance Sheet, and Cash Flow Date: Thank you for providing the details required to assist you in developing a comprehensive budget for successfully managing your personal finances and planning in advance for the future. As you have seen, our process of developing this plan for effective day to day management of financial activities required an in depth review of your

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    Cash Flow

    1. Explain why investors should use the statement of cash flows. Cash flow is one of the most important measurements used by investors in valuing a company. You will hear the term used in the context of understanding how much a company is really growing (or not) after accounting conventions are stripped out of the income statement. Cash flow measures the amount of cash that a company brings in and uses during the course of an accounting period (quarter or year) after all fixed expenses are eliminated

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    Cash Flows

    The Statement of Cash Flows Purpose of a statement of cash flows: To provide information about the cash inflows and outflows of an entity during a period. To summarize the operating, investing, and financing activities of the business. The cash flow statement helps users to assess a company’s liquidity, financial flexibility, operating capabilities, and risk. The statement of cash flows is useful because it provides answers to the following important questions:

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    Cash Flow

    4/8/2011 Cash Flows Scribd Upload a Document Search Books, Presentations, Business, Academics... Search Documents Explore Documents Books - Fiction Books - Non-fiction Health & Medicine Brochures/Catalogs Government Docs How-To Guides/Manuals Magazines/Newspapers Recipes/Menus School Work + all categories Featured Recent People Authors Students Researchers Publishers Government & Nonprofits Businesses Musicians Artists & Designers Teachers + all categories Most Followed Popular

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    Cash Flow

    Cash Flow Worksheet (In OMR) Date 31/12/2013 Income Gross Income Salary #1 Salary #2 Bowring 18,980 32,500 8,204 19,864 37,882 20,000 8,408 9,000 95,154 20,056 36,180 9,251 12,000 77,487 20,979 37,692 9,645 12,000 80,316 21,968 44,820 10,019 12,000 88,807 Annual 2013 Annual 2014 Annual 2015 Annual 2016 Annual 2017 Bounces Investments Other Total Income 59,684 Expenses Debt Annual Mortgage debt payment Personal loan payment Total Dept. 6,060 6,060 Annual 6,060

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    Pro Forma Analysis Cash Flow Forecasting

    Pro forma analysis cash flow forecasting Apartment Investment Case Study Scenario An investor is considering buying an apartment building with 140 units offered for sale at $16,500,000. The subject apartment building has the following unit mix: Additionally, the following assumptions are also being made by the investor in order to construct a 5-year cash flow pro forma: Vacancy and Credit Loss In the current market, vacancy and credit losses are running at 9%. Due to the improving market conditions

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    Cash Flow

    Cash Flow Assignment Companies are required to prepare a statement of cash flows (SCF) in their annual reports because it contains necessary information for external users, such as lenders and investors, who make economic decisions about the companies. It presents the sources and uses of cash and is a basis for cash flow analysis. Because it shows how much actual cash a company has generated, it presents if and how the company is able to pay for its operations and future growth. Companies

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    Cash Flow

    Horizonext strategy. FINANCIAL STATEMENTS Standalone Financial Statements 126 Independent Auditors’ Report 130 Balance Sheet 131 Statement of Profit and Loss 132 Cash Flow Statement 134 Notes to Accounts Consolidated Financial Statements 170 Independent Auditors’ Report 172 Balance Sheet 173 Statement of Profit and Loss 174 Cash Flow Statement 176 Notes to Accounts Subsidiary Companies 207 Financial Highlights 210 Listed Securities issued by Subsidiary Companies during FY 2013-14 14 Major

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    Cash Flow

    The Statement of Cash Flows Purpose of a statement of cash flows: To provide information about the cash inflows and outflows of an entity during a period. To summarize the operating, investing, and financing activities of the business. The cash flow statement helps users to assess a company’s liquidity, financial flexibility, operating capabilities, and risk. The statement of cash flows is useful because it provides answers to the following important questions:

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    Cash Flow

    Cash Flow All companies are required to prepare a cash flow statement since it provides the necessary information that other users require. External and internal users depend on the cash flow statement to determine their paths they have decided on. Lenders and investors look at the cash flow statement to see the company’s generated income, abilities to pay loans, and growth outcome predictions. The cash flow statement contains items such as depreciation that is also on the income statement, but

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    Cash Flows

    Cash Flow Statements Mindy Blankemeyer XACC/291 March 1, 2015 Tameka Johnson Cash Flow Statements Cash flow statements, which are also referred to as statement of cash flow, are a part of a company’s essential worksheets which demonstrate how a company has performed over a specific amount of time. Companies are required to prepare a cash flow statement because it will list all of the information the owners and investors will need to make important decisions about the company. The statement

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    Cash Budget

    Cash Budget Problem (50 points) The Teletron Corporation manufactures different types of printers for personal computers. The company is planning its cash needs for the first quarter of 2006. In the past, Teletron has had to borrow money during the first quarter since sales peak during this period of time. It would like to be aware of any potential cash shortages before they occur. The Controller asks you, the Senior Budgeting Accountant, to prepare a Cash budget for January, February, and

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    Cash Flows

    Cash Flow Quita Myrstol 4/23/15 XACC 291 Sheila Sullivan Companies consume and produce cash in many different ways. The cash flow statement show how each individual company obtains and uses their cash. The cash flow statement is divided into three sections. These sections consist of cash flows from operations, investing, and financing. The cash flow from operations is the source of the company’s cash generation. This particular cash generation is cash flow that is produced within the

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    Cash Flow

    The statement of cash flow's primary purpose is to provide information regarding a company's cash inflows and outflows during a specified accounting period. This paper will focus more on how cash flow is helpful to external users. The statement of cash flow complements the income statement and the balance sheet. When credit decisions are made, many factors must be assessed. According to FASB (SFAS-95, paragraph 5) the information on actual cash flows is useful to help creditors, investors, and other

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    Cash Flow

    actividades de financiamiento – son generados a partir de las transacciones que afectan la deuda y capital de la empresa. Ejemplo la emisión de o retiro de valores de capital y deuda como bonos. En el estado de flujos de efectivo se presentan de esta forma; Flujos de efectivo de las actividades operacionales $999.99 Flujos de efectivo de las actividades de inversión 999.99 Flujos de efectivo de las actividades de financiamiento 999.99 Aumento o disminución

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    What Is a Pro Forma Income Statement

    What is the purpose of a Pro Forma income statement? How would you use the information from the Pro Forma income statement? Provide an example. According to businesstown.com, Pro Forma income statements are “an important tool for planning future business operations. If the projections predict a downturn in profitability, you can make operational changes such as increasing prices or decreasing costs before these projections become reality.” Pro Forma income statements are used to let investors

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    Analyzing Pro Forma Statements Paper

    Analyzing Pro Forma Statements Paper Gregory Curry FIN/571 April 22, 2015 CRISTINA MARINE Analyzing Pro Forma Statements Analyzing Pro Forma Statements can be used internally or externally to determine how financially stable a company is whether International or within the USA, ratios play a key role in determining how a company is

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    Cash Flow

    CASE 2 STATEMENT OF CASH FLOWS Soul Silver Company’s comparative balance sheet and income statement for last year appear below: BALANCE SHEET Ending Beginning Balances Balances Cash P 62,000 P 38,000 Accounts receivable 85,000 66,000 Inventory 31,000 44,000 Prepaid expenses 0 4,000 Long-term investments 260,000 210,000 Plant and equipment 450,000 450,000 Accumulated depreciation (255,000) (219,000) Total Assets P 633,000 P 593,000 Accounts payable

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    Cash Flow

    TOPIC 11 – STATEMENT OF CASH FLOWS HOMEWORK SOLUTIONS Discussion questions 1. What is the purpose of a statement of cash flows? Refer to section 19.3. The purpose of a statement of cash flows is to present information about changes in the cash and cash equivalents of an entity during the period classified by operating, investing and financing activities. 2. How might a statement of cash flows be used? Refer to section 19.3. A statement of cash flows may be used by investors, creditors

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    Analyzing Pro Forma Statement

    Pro forma income statement is similar to historical income statement, the difference is that the pro forma income statement projects the future. Pro forma income statements provide an important benchmark for operating a business throughout the year ( BusinessTown 2001 ). It provides the information that they need to help them make the right choices for their business. The XYZ Company are looking to increase their sales in the next five years. The company will introduce a new product and they

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    Cash Flow

    Introduction Cash flow is one of the main components in accounting, this aid to decision-making in a company, so that decisions are more effective. Companies whose main objective is to generate profits for there to be a good flow of currency in which they can invest in new projects to become the best on the market, for this they need to have enough money to support the business expenses that are made weekly, monthly or annually, and also have money to save and to invest in future projects. With cash flow

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    Analyzing Pro Forma Statement

    Analyzing Pro Forma Statements Kaleah S. Daniels FIN/571 Analyzing Pro Forma Statements Pro forma statements are prepared to forecast financial results that are based on anticipated future projects or events. It is design to show projection of revenues, cash flows deducting the estimated expenses or costs for a particular business plan. Pro forma statements assist financial managers to plan accordingly, in terms of the company’s financial needs. How much financing is needed and when it is

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    Cash Flow

    achievements, but the question is do they reach their accomplishment’s. Cash flow is the backbone of any company or an organization, cash flow statements in general provides the information about a company’s gross profit for a specific period of time (Dunn 2005). The information contained in a statement of cash flows would help investors, creditors and others assess the following: The entity's ability to generate future cash flow: The main objective of a financial report is to provide data to anticipate

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    Pro Forma

    Analyzing Pro Forma Statements Christopher Radko has been in business for thirty years making blown glass Christmas ornaments. They have expanded their line to include snow globes and cookie jars and even a line of jewelry. I propose that Christopher Radko market a new product to their collectors; a home décor line that showcases their style. This line would include throw pillows, rugs, paintings and tabletop accent pieces. Pro Forma statements are hypothetical assumptions of a company for a

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    Cash Flow

    Statement of Cash Flows (Indirect Method) AAA Company Limited Statement of Cash Flows for the year ended December 31, 20XX $ $ Cash flows from Operating activities Net Income / Profit xx Adjustment for Non-operating Expenses Add: Depreciation expenses xx Add: Loss on Disposal of assets ( Net Book Value > Sale Proceeds ) xx Less: Profit on Disposal of assets ( Net Book Value < Sale Proceeds ) (xx) Changes in Current Assets and Current Liabilities (Increase)/Decrease

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    Cash Flows

    Direct Statements of Cash Flow for December 31, 2013 © www.excel-skills.com 2013 Cash flows from operating activities Cash Sales 4,523.00 Collections on Receivables 6,739.00 Purchases (1,332.00) Cash paid to employees (wages) (987.00) Cash paid to suppliers (1,028.00) Cash generated from operations 7,915.00 Interest payments (12.00) Tax Payments (275.00) Net cash from operating activities 7,628.00 Cash flows from investing activities

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    Cash Flows

    Direct Statements of Cash Flow for December 31, 2013 © www.excel-skills.com 2013 Cash flows from operating activities Cash Sales 4,523.00 Collections on Receivables 6,739.00 Purchases (1,332.00) Cash paid to employees (wages) (987.00) Cash paid to suppliers (1,028.00) Cash generated from operations 7,915.00 Interest payments (12.00) Tax Payments (275.00) Net cash from operating activities 7,628.00 Cash flows from investing activities

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    Cash Flows

    BRIEF EXERCISE 5-12 Cash Flow Statement | | | | Operating Activities | | | Net income | | $40,000 | Depreciation expense | $ 4,000 | | Increase in accounts receivable | (10,000) | | Increase in accounts payable | 7,000 | 1,000 | Net cash provided by operating activities | | 41,000 | Investing Activities | | | Purchase of equipment | | (8,000) | | | | Financing Activities | | |

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    Cash Budget

    The importance of cash budget may be summarised as follow:-(1) Helpful in Planning. Cash budget helps planning for the most efficient use of cash. It points out cash surplus, or deficiency at selected point of time and enables the management to arrange for the deficiency before time or to plan for investing the surplus money as profitable as possible without any threat to the liquidity. (2) Forecasting the Future needs. Cash budget forecasts the future needs of funds, its time and the amount well

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    Cash Flows

    According to “Financial Accounting, sixth edition”, cash flow “permits a company to expand operations, replace worn assets, take advantage of new investment opportunities, and pay dividends to its owners”. Analyzing cash flow enables one to understand what happened to cash and cash equivalents throughout a specific period – how to the beginning balance of cash become the ending balance. The statement classifies cash flow in three different categories; operating activities, investing activities,

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    Cash Flows

    [pic] CASH FLOW STATEMENT & FINANCIAL STATEMENT ANALYSIS Submitted by: Syed Adnan Ali Gillani Roll Number: M3F14MCOM0003 M.com 1st semester Submitted to: Pro. Raja Sadaqat ACKNOWLEDGMENT In the name of Allah, Most Gracious, Most Merciful Praise be to Allah, the Cherisher and Sustainer of the worlds; Most Gracious, Most Merciful; Master of the Day of Judgment. Thee do we worship, and Thine aid we seek. The way of those on

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    Pro Forma Cash Flow Budget

    investment. If cash flows are discounted at k1, NPV is positive and IRR > k1: accept project If cash flows are discounted at k2, NPV is negative and IRR < k2: reject the project.” The IRR is the break-even discount rate which makes the inflow of cash equals to outflow of cash. It brings the net present value (NPV) of investment as 0. It is general assumption that internal rate of return (IRR) are the rate of re-investment for cash flows. NPV evaluates the excess of cash flows at defined period

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    Cash Flow Forecasting

    Cash Flow Forecasting Essential Capital Markets Books in the series: Cash Flow Forecasting Corporate Valuation Credit Risk Management Finance of International Trade Mergers and Acquisitions Portfolio Management in Practice Introduction to Project Finance Syndicated Lending Cash Flow Forecasting Edited by Andrew Fight A MSTERDAM • BOSTON • HEIDELBERG • LONDON • NEW YORK • OXFORD P ARIS • SAN DIEGO • SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO Butterworth-Heinemann is an

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    Discounted Cash Flow

    CHAPTER 4 DISCOUNTED CASH FLOW VALUATION Solutions to Questions and Problems 10. To find the future value with continuous compounding, we use the equation: FV = PVeRt a. b. c. d. FV = $1,000e.12(5) FV = $1,000e.10(3) FV = $1,000e.05(10) FV = $1,000e.07(8) = $1,822.12 = $1,349.86 = $1,648.72 = $1,750.67 23. We need to find the annuity payment in retirement. Our retirement savings ends at the same time the retirement withdrawals begin, so the PV of the retirement withdrawals will be the FV of

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