Mini Case: "Financial Statement and Cash Flow - Essay Example

Only on StudentShare

Extract of sample
Mini Case: "Financial Statement and Cash Flow

Free cash flow= cash from operations- capital expenditures The free cash flow represents the financial ability of the company; that is its ability to engage in investment activities that goes beyond the planned investment activities (Walter, Harrison, & Horngren, 2003). However, noting that many investment activities of companies are quite significant, caution should be taken when implementing any investment activity that falls above the budgeted investments. Cash from operations is also referred to as earnings before interest net of depreciation and amortization. Therefore; Free cash flow= 17,237,000+800,000 =18,037,000 2. Calculate Jaedan’s liquidity. A company’s liquidity ratios are used in determining the organizations capacity to meet its short-term obligations when they fall due. Liquidity ratios are important to the investors when conducting fundamental analysis of the firm. High values imply that a firm has adequate assets compared to liabilities and should therefore can pay off short-term debts with ease. Current ratio helps to assess the company’s current assets ability to pay-off current liabilities. The liquidity ratios include: Current ratio= Current Assets/ Current liabilities =15,066,000/4,342,000 =3.5 Industry current ratio= 3.26 Quick ratio also is also known as acid test ratio. It is more stringent and refined than current ratio. The ratio uses assets that are highly liquid. ...Show more


Mini Case: Financial Statement and Cash Flow Analysis By ID Code+ University name Date PART A: 1. Calculate Jaedan’s free cash flow. Free cash flow is useful in determining the company’s flow of cash…
Author : jenagoyette
Save Your Time for More Important Things
Let us write a custom essay on your topic
"Mini Case: "Financial Statement and Cash Flow"
with a personal 20% discount.
Find out more

Related Essays

Linguistics/ Theory of Translation
Especially, in translation, this interaction must be defined as well as elaborated with an empirical approach including convincible data. This research study aims to describe individual as well as collective reaction of speakers toward the translation of cultural elements in a foreign language.
12 pages (3000 words) Thesis
Mini Case in Finance and Accounting
The examination of the cash flows of the business enables the management to correctly asses the timing of the benefit or cost. Cash flows must be assessed on an after tax basis because these are the available flows to the shareholder. Furthermore, the firm must focus on the incremental cash flows rather than incremental profits as the company looks at the project as a whole.
6 pages (1500 words) Case Study
Personal Budget, Balance Sheet, and Cash Flow Statement
A personal balance is mainly a list of individual assets, liabilities and the network of the individual. The balance sheet indicates the financial position of the individual at a particular time. It contains the assets, the liabilities and network of the individual.
4 pages (1000 words) Essay
The Home Depot There is an increase in the amount of cash and cash equivalents in 2011 of $1,474M compared to 2010. The increase has come entirely from operating activities (6,651M) while investing and financing activities have contributed to decreases in cash and cash equivalents.
3 pages (750 words) Assignment
Corporate finance - WACC - Cash Flow - Measuring Return on Investment - discounted cash flow techniques - Financing Decisions -
The following discussion entails the significance of all three approaches: A. ACCOUNTING EARNINGS VERSUS CASH FLOWS One of the most fundamental approaches in understanding and analyzing the return on investments is to see whether ROI should be analyzed based on accounting earnings or cash flows.
19 pages (4750 words) Assignment
cash flow statement and report
ivalent (25,000) Opening cash 40,000 Closing cash 15,000 2. (a) The cash flows from operating activities are showing a negative $ 5,000 which shows that the company has invested heavily in its working capital and also paying off its major liabilities. The cash flow statement starts from the net income taken from the income statement of the company.
5 pages (1250 words) Case Study
Mini Case: "Financial Statement and Cash Flow
The calculation of free cash flow is important as it helps the company to understand the opportunities and scopes which will enable to maximize the shareholder’s wealth. The calculation of free cash flow is mentioned below: Free Cash Flow= Earnings before Interest and Tax (1-Tax Rate) + Depreciation – Total Change in the Net Working capital – Capital Expenditure Calculation of Free Cash flow Particulars Amount(in $) EBIT 13119000 Depreciation 800000 Tax Rate 34% Change in Fixed assets 2932000 Changes in Current assets 4530181 Changes in Accruals 150000 Changes in Accounts Payable 190000 Changes in Net Working Capital 4168181 Capital Expenditure 7802181 Free Cash Flow -2511822 The free
6 pages (1500 words) Essay
cash Flow
Panera Bread Company and its subsidiaries are popularly referred to as “Panera” or “Panera Bread”. The company is a national bakery cafe that owns over 1450 companies and also operates with franchises in bakery. The company has dominant presence in Columbia and Ontario, Canada where it operates in 40 states.
3 pages (750 words) Case Study
Management Accounting 2
Regardless of its size, it has become an inevitable part for any corporate. It serves as a tool to exercise control over a company’s business operations. Formal budget management needs
6 pages (1500 words) Essay
Accounting Information Systems - Information Needs for the AIS
The AIS is highly flexible in nature and is generally modified by user as per requirement. On the basis of requirements, the cost associated with particular AIS ranges between inexpensive to high cost
5 pages (1250 words) Research Paper
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email