Formula Sheet - Formula Sheet: FINA4200 Midterm 1...

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Formula Sheet: FINA4200 Midterm 1 Modification of Financial Statements New Balance of retained earnings = Previous Balance + Net Income – Common Dividends = Previous Balance + Addition to Retained Earnings Net Cash Flow = Net Income + Depreciation and Amortization Operating Current Assets = Cash + Accounts receivable + Inventories Operating Current Liabilities = Accounts payable + Accruals Net Operating Working Capital (NOWC) = Operating Current Assets – Operating Current Liabilities Total Net Operating Capital (TNOC) = Net Operating Working Capital + Long-term Assets NOPAT = EBIT * (1 – Tax Rate) Free Cash Flow (FCF) = NOPAT - Net investment in operating capital Return of Invested Capital (ROIC) = NOPAT / Total Net Operating Capital Economic Value Added (EVA) = NOPAT- WACC * Total Net Operating Capital Market Value Added (MVA) = Market Value of stock - Book Value of Common Equity Financial Ratios Current Ratio = Current Asset / Current Liabilities Quick Ratio = (Current Asset – Inventory) / Current Liabilities
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Formula Sheet - Formula Sheet: FINA4200 Midterm 1...

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