Cash Flow Calculation

Cash Flow Calculation

CFO

Direct method

(1) Cash receive from customer= Revenue- Change in Net A/R+ Change in U/R –BDE

=1000-18+32-5=1009

(2) Cash paid to supplier= COGS + Change in inventory –Change in A/P for inventory

=650+(-1)-(55-40)*0.7=638.5

(3) Cash paid to operating expense= Operating expense+ Change in prepaid assets- Change in A/P for prepaid assets

=97+(39-29)-(55-40)*0.3=102.5

Operating expense includes: Supplies expense, Rent expense, Other operating expense

(4) Cash paid to employees = Salary expense- Change in S/P

=80-(32-24)=72

(5) Cash paid to interest= Interest expense- Change in I/P

=5.75-(3.25-2.5)=5

(6) Cash paid for tax= Tax payable- Change in T/P

=51.5-(51.5-50)=50

(7) Cash receive from other assets= Interest revenue+ Dividend revenue –Unrealized gains in STI

=3.5+7.5-1=10

Cash flow from operating activities=(1)-(2)-(3)-(4)-(5)-(6)+(7)=151

CFO

Indirect method-Reconcile

CFO=NI+ Depreciation-Gain on sale of equipment – Change in Net A/R –Change in inventory –Change in prepaid operating expense+ Change in U/R +Change in A/P+ Change in S/P+ Change in I/P+ Change in T/P+ Stock based compensation+ Loss on the discontinued operations- Unrealized gains on STI- Change in dividend receivable

=72.25+30.5-5-18-(-1)-10+32+15+8+0.75+1.5+5+20-1-1=151

Cash flow from operating activities 151

CFI

Cash paid to buy building (10)

*Change in building 40- Change in N/P 30= Cash paid to buy building 10

Cash paid to buy equipment (50)

*80+30-60=50

Cash received from sale of land 20

*120-100=20

Cash received from sale of equipment 17.5

*30-3.5*5+5=17.5

Cash paid for available for sale securities (25)

*Change in available for sales securities – Unrealized gains on STI=26-1=25

Cash flow from investing activities (47.5)

CFF

Cash paid for dividend (22)

*Total paid dividend=26, and 4 was paid in 2010, so cash paid for dividend (common stock 10 and preferred stock 12 )=22

Cash paid for repurchasing common...