2. Example: U.S. Corporation
• CFFA = OCF – NCS - ΔNWC
OCF = EBIT + depreciation – taxes = ...........
= $694 + 65 – 212 = $547
NCS = ending net FA– beginning net FA + depreciation = .....
= $1709 – 1644 + 65 = $130
ΔNWC = ending NWC – beginning NWC = ...........
= ($1403 – 389) – ($1112 – 428) = $330
CFFA = OCF – NCS - ΔNWC
• CFFA = 547 – 130 – 330 = $87
2009 2010 2009 2010
Current Assets Current Liabilities
Cash $104 $160 Accounts Payable $232 $266
Accounts Receivable 455 688 Notes Payable 196 123
Inventory 553 555 Total $428 $389
Total $1,112 $1,403
Fixed Assets
Net Fixed assets $1,644 $1,709 Long-term debt $408 $454
Owners' equity
Common stock and
paid-in surplus 600 640
Retained earnings 1,320 1,629
Total $1,920 $2,269
Total assets $2,756 $3,112
Total Liabilties &
Owners Equity $2,756 $3,112
Balance Sheet
Assets Liabiities & Owners' Equity
$1,509
750
65
$694
70
$624
212
$412
Dividends $103
Addition to retained earnings $309
Taxes
Net Income
Depreciation
Interest Paid
Earnings before interest and taxes
Taxable income
U.S. Corporation
Income Statement
Net sales
Cost of goods sold
3. Example: U.S. Corporation
• CFFA = CF/CR + CF/SH
CF/CR = interest paid – net new borrowing = ....................
= $70 – ($454 – 408) = $24
CF/SH = dividends paid – net new equity = .......................
= $103 – ($640 – 600) = $63
• CFFA = $24 + $63 = $87
2009 2010 2009 2010
Current Assets Current Liabilities
Cash $104 $160 Accounts Payable $232 $266
Accounts Receivable 455 688 Notes Payable 196 123
Inventory 553 555 Total $428 $389
Total $1,112 $1,403
Fixed Assets
Net Fixed assets $1,644 $1,709 Long-term debt $408 $454
Owners' equity
Common stock and
paid-in surplus 600 640
Retained earnings 1,320 1,629
Total $1,920 $2,269
Total assets $2,756 $3,112
Total Liabilties & Owners
Equity $2,756 $3,112
U.S. Corporation
Balance Sheet
Assets Liabiities & Owners' Equity
$1,509
750
65
$694
70
$624
212
$412
Dividends $103
Addition to retained earnings $309
Taxes
Net Income
Depreciation
Interest Paid
Earnings before interest and taxes
Taxable income
U.S. Corporation
Income Statement
Net sales
Cost of goods sold
4. 2.1 Cash Flow for Mara Corporation This problem will give you some practice
working with financial statements and figuring cash flow. Based on the following
information for Mara Corporation, prepare an income statement for 2002 and bal-
ance sheets for 2001 and 2002. Next, following our U.S. Corporation examples
in the chapter, calculate cash flow from assets, cash flow to creditors, and cash
flow to stockholders for Mara for 2002. Use a 35 percent tax rate throughout. You
can check your answers against ours, found in the following section.
2001 2002
Sales $4,203 $4,507
Cost of goods sold 2,422 2,633
Depreciation 785 952
Interest 180 196
Dividends 225 250
Current assets 2,205 2,429
Net fixed assets 7,344 7,650
Current liabilities 1,003 1,255
Long-term debt 3,106 2,085
5. 2001 2002 2001 2002
Current assets $2,205 $ 2,429 Current
liabilities
$1,003 $ 1,255
Net fixed assets 7,344 7,650 Long-term
debt
3,106 2,085
Equity 5,440 6,739
Total assets $9,549 $10,079
Total
liabilities and
shareholders’
equity
$9,549 $10,079
BALANCE SHEET
6. Sales $ 4,507
Cost of goods sold $ 2,633
Depreciation $ 952
Earnings before interest and taxes $ 922
Interest paid $ 196
Taxable income $ 726
Taxes (35%) $ 254
Net income $ 472
Dividends $ 250
Addition to retained earnings $ 222
INCOME STATEMENT
7. Operating cash flow $ 1,620
Net capital spending $ 1,258
Change in NWC $ 28
Cash flow from assets $ 390
Interest paid $ 196
Net new borrowing $ 1,021
Cash flow to creditors $ 1,217
Dividends paid $ 250
Net new equity raised $ 1,077
Cash flow to stockholders $ - 827
Kenapa 1077
bukan 1299 ?
(hrs dikurang RE)
= 196 – (-1021)
Hutang turun
Buktikan CFFA – CF/CR – CF/SH = 0 390 -1217 + 827 = 0
390 = 1217 - 827
