This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: AP=Accounts payable Accr. = Accruals Depr. = Depreciation OCF=Operating Cash Flows NFAI=Net Fixed Asset Investment NCAI=Net Current Assets Investment FCF = Free Cash Flow EBIT= Earnings Before Interest Tax otherwise known as operating profits NOPAT= Net Operating Profits After Tax then NOPAT = EBIT*(1 – T) OCF = EBIT*(1 – T) + Depr.= NOPAT + Depr. NFAI = NFA END – NFA BEG + Depr. = GFA END- GFA BEG NCAI = (CA END – CA BEG ) – ((AP END + Accr. END ) - (AP BEG +Accr. BEG )) Please note that the same formula can be re-arranged in many ways, they will all give you the same result....
View Full Document
This note was uploaded on 06/02/2011 for the course FINA 3310 taught by Professor Staff during the Spring '08 term at Texas A&M University, Corpus Christi.
- Spring '08