18 certified financial controller cfc 9 initial cash

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Unformatted text preview: erminal-year incremental net cash Terminalflows – the final period’s net cash flow. 18 Certified Financial Controller CFC 9 Initial Cash Outflow a) b) c) d) e) f) Cost of “new” assets + Capitalized expenditures + (–) Increased (decreased) NWC – Net proceeds from sale of “old” asset(s) if replacement asset(s) if replacement + (–) Taxes (savings) due to the sale of “old” asset(s) if replacement = Initial cash outflow outflow 19 Certified Financial Controller CFC Incremental Cash Flows a) Net incr. (decr.) in operating revenue less (plus) any net incr. (decr.) in operating expenses, excluding depr. b) – (+) Net incr. (decr.) in tax depreciation c) = d) – (+) Net incr. (decr.) in taxes incr. (decr.) in taxes e) = f) + (–) Net incr. (decr.) in tax depr. charges g) = 20 Net change in income before taxes Net change in income after taxes Incremental net cash flow for period Certified Financial Controller CFC 10 TerminalTerminal-Year Incremental Cash Flows a) Calculate the incremental net cash flow for the terminal period b) + (–) Salvage value (disposal/reclamation costs) of any sold or disposed assets c) – (+) Taxes (tax savings) due to asset sale or disposal of “new” assets d) + (–) Decreased (increased) level of “net” working capital e) = 21 Terminal year incremental net cash flow Certified Financial Controller CFC Example of...
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