CFI FMVA
- ANS-A growing company would expect to have higher capital expenditure than
depreciation. This is due to growth, and due to inflation. Capital expenditure is at modern
prices. Depreciation is at old prices.
!!! FOR CFS =>
ASSETS (cash outflows) => Y0 - Y1
LIABILITIES (cash inflows) => Y1 - Y0
"DIVIDENDS PAID" results in cash flow and a negative CFS score. ***Investment DOWN
btwn 2 periods - Why?} Sold part so cash INFLOW - ANS-
!!! If you make an error/add text with iterative calculations, delete them & undo (ctrl z)
=> iterative calcs for interest
circular switch => if create any error leading to #VALUE! => CREATE CELL WITH SWITCH
=IF($D$21=1,F105,0)
in office, switch off iterations off - ANS-
'Cleaning' EBITDA - ANS-
'Cleaning' NI - ANS-
'Cleaning' Op. Profit - ANS-'Cleaning' Op. Profit
=> Adding non-recurring expenses
E.g. large gains/losses on sale of subsidiaries; restructuring/reorg/severance
costs/impairment-write downs/litigation costs/M&A fees/integration costs/more (unexpected
loss of value vs depreciation expected loss of value)
=> Adding non-core expense
=> Adding non-controlled expense
=> Subtract non-recurring income
=> Subtract non-core income
=> Subtract non-controlled income
= 'Clean' EBIT
[A company examines its equity, resulting in the issuance and repurchase of additional
shares] Calculating impact of transactions on equity => SHARES - ANS-Common stock:
APIC:
Treasury stock:
=> historical
=> adjustment (new shares issued & shares repurchased)
=> projected (= historical + adjustment)
***Impact on equity split between Common Stock and APIC
[ACCOUNTING] Calculating total liabilities & equity @ period-end - ANS-Calculate total
liabilities and equity at the end of Period X => The impact of each transaction on liabilities
and equity must be calculated.
NOTE: items impacting IS will flow through into the retained earnings section of equity.
Some transactions may not impact liabilities and equity. Some transactions may have two
offsetting impacts.
-----
Using the information below, what is the COGs?
, Cost of goods sold (COGS) looks at the items that were sold, and asks what were the direct
costs related to those items.
E.g.} This includes the water, the plastic bottle, and the label for a water bottle. -----
What is the WC cycle for the below company?
A POSITIVE number = funding required, a NEGATIVE number is funding provided.
WC cycle = Receivable days + Inventory days - Payable days
Receivable days = Receivable/Sales*Number of days of Sales
Inventory days = Inventory/COGS*Number of days of COGS
Payable days = Payable/COGS*Number of days of COGS
-----
The WC cycle calculates the number of days that cash is tied up in operations. It looks at
the number of days between the cash outflow and inflow.
-----
PPE BASE ANALYSIS FOR FINDING CAPEX & FORECASTING PPE:
BASE (beginning, add, subtract, ending) analysis is used to forecast ending PP&E using
opening PP&E, capex and depreciation. In a forecast calculation, when 1 variable is
missing, BASE can be used to calculate that missing variable.
-----
BASE ANALYSIS FOR INTANGIBLES}
B Intangibles
Add Purchases for Intangible assets
Subtract Amort
E Intangibles
Using the information below, calculate the amortization number (straight line method) that
will be shown in the operating cash flow section of the cash flow statement, each year.
-----
AMORT:
Amortization is calculated as the amount of value lost per annum from an intangible asset,
that is expensed to the income statement and app
[WORKING CAPITAL] Assets at present Examples} - ANS-
[WORKING CAPITAL] Current Liabilities
Examples} - ANS-
***no strike price when looking at RSUs
Basic shares outstanding MM
# of options
Strike price
Net new shares from options MM
Net new shares from RSU's MM
Diluted shares outstanding MM - ANS-
% Excel Shortcut - ANS-Alt H P
8K Report - ANS-PRESS RELEASE [standard format]
=> document filed with the SEC that describes a change in the firm that many affect the
value of its securities
A business owns a bond which it accounts for as "fair value through other comprehensive
income (FVOCI)"
The market value of the bond has increased. The business has not sold the bond. How will
this increase be reflected in the balance sheet? - ANS-
- ANS-A growing company would expect to have higher capital expenditure than
depreciation. This is due to growth, and due to inflation. Capital expenditure is at modern
prices. Depreciation is at old prices.
!!! FOR CFS =>
ASSETS (cash outflows) => Y0 - Y1
LIABILITIES (cash inflows) => Y1 - Y0
"DIVIDENDS PAID" results in cash flow and a negative CFS score. ***Investment DOWN
btwn 2 periods - Why?} Sold part so cash INFLOW - ANS-
!!! If you make an error/add text with iterative calculations, delete them & undo (ctrl z)
=> iterative calcs for interest
circular switch => if create any error leading to #VALUE! => CREATE CELL WITH SWITCH
=IF($D$21=1,F105,0)
in office, switch off iterations off - ANS-
'Cleaning' EBITDA - ANS-
'Cleaning' NI - ANS-
'Cleaning' Op. Profit - ANS-'Cleaning' Op. Profit
=> Adding non-recurring expenses
E.g. large gains/losses on sale of subsidiaries; restructuring/reorg/severance
costs/impairment-write downs/litigation costs/M&A fees/integration costs/more (unexpected
loss of value vs depreciation expected loss of value)
=> Adding non-core expense
=> Adding non-controlled expense
=> Subtract non-recurring income
=> Subtract non-core income
=> Subtract non-controlled income
= 'Clean' EBIT
[A company examines its equity, resulting in the issuance and repurchase of additional
shares] Calculating impact of transactions on equity => SHARES - ANS-Common stock:
APIC:
Treasury stock:
=> historical
=> adjustment (new shares issued & shares repurchased)
=> projected (= historical + adjustment)
***Impact on equity split between Common Stock and APIC
[ACCOUNTING] Calculating total liabilities & equity @ period-end - ANS-Calculate total
liabilities and equity at the end of Period X => The impact of each transaction on liabilities
and equity must be calculated.
NOTE: items impacting IS will flow through into the retained earnings section of equity.
Some transactions may not impact liabilities and equity. Some transactions may have two
offsetting impacts.
-----
Using the information below, what is the COGs?
, Cost of goods sold (COGS) looks at the items that were sold, and asks what were the direct
costs related to those items.
E.g.} This includes the water, the plastic bottle, and the label for a water bottle. -----
What is the WC cycle for the below company?
A POSITIVE number = funding required, a NEGATIVE number is funding provided.
WC cycle = Receivable days + Inventory days - Payable days
Receivable days = Receivable/Sales*Number of days of Sales
Inventory days = Inventory/COGS*Number of days of COGS
Payable days = Payable/COGS*Number of days of COGS
-----
The WC cycle calculates the number of days that cash is tied up in operations. It looks at
the number of days between the cash outflow and inflow.
-----
PPE BASE ANALYSIS FOR FINDING CAPEX & FORECASTING PPE:
BASE (beginning, add, subtract, ending) analysis is used to forecast ending PP&E using
opening PP&E, capex and depreciation. In a forecast calculation, when 1 variable is
missing, BASE can be used to calculate that missing variable.
-----
BASE ANALYSIS FOR INTANGIBLES}
B Intangibles
Add Purchases for Intangible assets
Subtract Amort
E Intangibles
Using the information below, calculate the amortization number (straight line method) that
will be shown in the operating cash flow section of the cash flow statement, each year.
-----
AMORT:
Amortization is calculated as the amount of value lost per annum from an intangible asset,
that is expensed to the income statement and app
[WORKING CAPITAL] Assets at present Examples} - ANS-
[WORKING CAPITAL] Current Liabilities
Examples} - ANS-
***no strike price when looking at RSUs
Basic shares outstanding MM
# of options
Strike price
Net new shares from options MM
Net new shares from RSU's MM
Diluted shares outstanding MM - ANS-
% Excel Shortcut - ANS-Alt H P
8K Report - ANS-PRESS RELEASE [standard format]
=> document filed with the SEC that describes a change in the firm that many affect the
value of its securities
A business owns a bond which it accounts for as "fair value through other comprehensive
income (FVOCI)"
The market value of the bond has increased. The business has not sold the bond. How will
this increase be reflected in the balance sheet? - ANS-
