Financial Forecasting: Cash Flows and Capital
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Step 1: Forecasted Operating Cash Flows
Step 1: Forecasted Operating Cash Flows | |||
t | t+1 | t+2 | |
1. Revenues | Sales t | Salest (1+Forecast) | Salest (1+Forecast)² |
2. Cost: (92% of revenues) | Cost of goods sold t + Other expenses t | Sales t+1 * 0.92 | Sales t+2 * 0.92 |
3. Depreciation (9% net fixed assets, Start year) | Depreciation t | Net fixed Assets t * 0.09 | Net fixed Assets t+1 * 0.09 |
4. EBIT (1-2-3) | 1-2-3 | 1-2-3 | 1-2-3 |
5. Interest (10% long-term debt, start year) | Interest t (P&L) | Long-term debt t * 0.10 | Long-term debt t+1 * 0.10 |
Taxable income | 4-5 | 4-5 | 4-5 |
6. Tax (50%) | (4-5) * 50% | (4-5) * 50% | (4-5) * 50% |
7. NET INCOME (4-5-6) | |||
Operating Cash Flow (3+7) | 3+7 | 3+7 | 3+7 |
Step 2: Forecasted External Capital Required
Step 2: Forecasted Amounts of External Capital Required | ||
Sources of capital | t | t+1 |
1. Net income | ||