Cash Flow Analysis(英文版)(ppt 30页)

Cash Flow Analysis(英文版)内容提要：
Profit (“the bottom line” of the I&E Statement)
Plus 7 year-to-year change adjustments (Balance Sheet)
Accounts receivable
Inventory
Prepaid expenses
Depreciation
Accounts Payable
Accrued Expenses
Income Tax Payable
……

Growth Consumes Ca$h!
Increasing revenue with controlled expenses will result in increased profits
Revenue increases also drive increases in operating assets
Cash increases are not as large as profit increases but are delayed because of AR
Declining businesses experience opposite effect and can experience increased “cash flow” over profit changes
……

The Depreciation Story：
Capital assets are a cash flow out when the asset is bought (Cash Flow/Investing)
The bought assets are added to the Property, Plant & Equipment line of the Balance Sheet
The appropriate depreciation is allocated for in the period that it is “used” on the I&E
The sum of the accumulated depreciations from the I&E is subtracted from the purchase price of the assets on the balance sheet
The allocated I&E depreciation is “added back” to the Income in the Cash Flow analysis

 

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