Fast Five Cash Flow

Question 1

Change in Operating Cash Flow

Answer 1

Change=Op Cash Flow yr 2 - Op Cash Flow yr 1

Importance: how much gross cash the business is generating

Question 2

Free Cash Flow

Answer 2

FCF = Op Cash Flow - Capital Expenditures

Question 3

Sales and acquisitions of businesses

Answer 3

Sales and Acq of biz = (Sales of biz - acq of biz) year 2 - (Sales of biz - acq of biz) year 1

Question 4

Debt Capital Financing

Answer 4

Debt Cap Fin = (debt raised - debt retired) yr 2 - (debt raised - debt retired) yr 1

Question 5

Equity Capital Financing

Answer 5

Eq Cap Fin = (equity raised - equity retired) yr 2 - (equity raised - equity retired) yr 1

Down means the compan

Up means company is selling stock to raise capital…check EPS