Funds Analysis, Cash-Flow Analysis, and Financial Planning

Funds Analysis, Cash-Flow Funds Analysis, Cash-Flow Analysis, and Financial Analysis, and Financial

PlanningPlanning

Funds Analysis, Cash-Flow Funds Analysis, Cash-Flow Analysis, and Financial Analysis, and Financial

PlanningPlanning

Funds Analysis, Cash-Flow Funds Analysis, Cash-Flow Analysis, and Financial PlanningAnalysis, and Financial Planning

Funds Analysis, Cash-Flow Funds Analysis, Cash-Flow Analysis, and Financial PlanningAnalysis, and Financial Planning

Flow of Funds (Sources and Uses) StatementFlow of Funds (Sources and Uses) Statement

Accounting Statement of Cash FlowsAccounting Statement of Cash Flows

Cash-Flow ForecastingCash-Flow Forecasting

Cash BudgetingCash Budgeting

Flow of Funds (Sources and Uses) StatementFlow of Funds (Sources and Uses) Statement

Accounting Statement of Cash FlowsAccounting Statement of Cash Flows

Cash-Flow ForecastingCash-Flow Forecasting

Cash BudgetingCash Budgeting

Flow of Funds StatementFlow of Funds StatementFlow of Funds StatementFlow of Funds Statement

Has been replaced by the Has been replaced by the cash flow statementcash flow statement (1989) in U.S. audited annual reports.(1989) in U.S. audited annual reports.

Has been replaced by the Has been replaced by the cash flow statementcash flow statement (1989) in U.S. audited annual reports.(1989) in U.S. audited annual reports.

A summary of a firm’s changes in financial position from one period to

another; it is also called a sources and uses of funds statement or a statement

of changes in financial position.

A summary of a firm’s changes in financial position from one period to

another; it is also called a sources and uses of funds statement or a statement

of changes in financial position.

Why Examine the Flow Why Examine the Flow of Funds Statementof Funds Statement


QUESTION?QUESTION?

Why should we bother to understand a Why should we bother to understand a Flow of Funds Statement that is no Flow of Funds Statement that is no longer required to appear in U.S. longer required to appear in U.S.

audited annual reports?audited annual reports?

QUESTION?QUESTION?

Why should we bother to understand a Why should we bother to understand a Flow of Funds Statement that is no Flow of Funds Statement that is no longer required to appear in U.S. longer required to appear in U.S.

audited annual reports?audited annual reports?



Includes important non-cash transactions while the Includes important non-cash transactions while the cash flow statement does not.cash flow statement does not.Is easy to prepare and often preferred by managers Is easy to prepare and often preferred by managers for analysis purposes over the more complex cash for analysis purposes over the more complex cash flow statement.flow statement.Helps you to better understand the cash flow Helps you to better understand the cash flow statement, especially if it is prepared under the statement, especially if it is prepared under the “indirect method.”“indirect method.”

Includes important non-cash transactions while the Includes important non-cash transactions while the cash flow statement does not.cash flow statement does not.Is easy to prepare and often preferred by managers Is easy to prepare and often preferred by managers for analysis purposes over the more complex cash for analysis purposes over the more complex cash flow statement.flow statement.Helps you to better understand the cash flow Helps you to better understand the cash flow statement, especially if it is prepared under the statement, especially if it is prepared under the “indirect method.”“indirect method.”

The Flow of Funds Statement:The Flow of Funds Statement:

Flow of Funds StatementFlow of Funds StatementFlow of Funds StatementFlow of Funds Statement

All of the firm’s All of the firm’s investments and claims investments and claims against those investments. against those investments.

Extends Extends beyond just beyond just transactions involving transactions involving cashcash..

All of the firm’s All of the firm’s investments and claims investments and claims against those investments. against those investments.

Extends Extends beyond just beyond just transactions involving transactions involving cashcash..

What are “What are “fundsfunds”?”?

Sources and Sources and Uses StatementUses Statement

Sources and Sources and Uses StatementUses Statement

The letters labeling the The letters labeling the boxes stand for boxes stand for UUsesses, , SSourcesources, , AAssetsssets, and , and LLiabilitiesiabilities (broadly (broadly defined). The pluses defined). The pluses (minuses) indicate (minuses) indicate increases (decreases) in increases (decreases) in assets or liabilities.assets or liabilities.

The letters labeling the The letters labeling the boxes stand for boxes stand for UUsesses, , SSourcesources, , AAssetsssets, and , and LLiabilitiesiabilities (broadly (broadly defined). The pluses defined). The pluses (minuses) indicate (minuses) indicate increases (decreases) in increases (decreases) in assets or liabilities.assets or liabilities.

AA LL

- +- +

+ -+ -

SS

UU

BW’s Determination BW’s Determination of Sources and Usesof Sources and Uses


$ 100 - S$ 100 - S 410 - S410 - S 616 + U616 + U 5 --5 -- 99 + U + U$ 1,140$ 1,140 N/A N/A 930 930 N/A N/A (299) (299) N/A N/A$ 631$ 631 + + UU

50 50 ---- 223223 ----$ 2,044$ 2,044

$ 100 - S$ 100 - S 410 - S410 - S 616 + U616 + U 5 --5 -- 99 + U + U$ 1,140$ 1,140 N/A N/A 930 930 N/A N/A (299) (299) N/A N/A$ 631$ 631 + + UU

50 50 ---- 223223 ----$ 2,044$ 2,044

Cash and C.E. $ 90 Cash and C.E. $ 90 Acct. Rec. 394 Acct. Rec. 394 Inventories 696 Inventories 696 Prepaid ExpPrepaid Exp 5 5 Accum Tax PrepayAccum Tax Prepay 10 10 Current AssetsCurrent Assets $ $ 1,195 1,195

Fixed Assets (@Cost)Fixed Assets (@Cost) 1030 1030 Less: Acc. Depr. Less: Acc. Depr. (329) (329)

Net Fix. AssetsNet Fix. Assets $ 701 $ 701 Investment, LT Investment, LT 50 50

Other Assets, LT Other Assets, LT 223 223 Total AssetsTotal Assets $ 2,169$ 2,169

Assets 2007 2006 +/- S/UAssets 2007 2006 +/- S/U



$ 100 $10 S$ 100 $10 S 410 16 S410 16 S 616 80 616 80 UU

5 --5 -- 99 1 1 UU

$ 1,140$ 1,140 N/A N/A 930 930 N/A N/A (299) (299) N/A N/A$ 631$ 631 70 70 UU

50 50 ---- 223223 ----$ 2,044$ 2,044

$ 100 $10 S$ 100 $10 S 410 16 S410 16 S 616 80 616 80 UU

5 --5 -- 99 1 1 UU

$ 1,140$ 1,140 N/A N/A 930 930 N/A N/A (299) (299) N/A N/A$ 631$ 631 70 70 UU

50 50 ---- 223223 ----$ 2,044$ 2,044

Cash and C.E. $ 90 Cash and C.E. $ 90 Acct. Rec. 394 Acct. Rec. 394 Inventories 696 Inventories 696 Prepaid ExpPrepaid Exp 5 5 Accum Tax PrepayAccum Tax Prepay 10 10 Current AssetsCurrent Assets $ $ 1,195 1,195

Fixed Assets (@Cost)Fixed Assets (@Cost) 1030 1030 Less: Acc. Depr. Less: Acc. Depr. (329) (329)

Net Fix. AssetsNet Fix. Assets $ 701 $ 701 Investment, LT Investment, LT 50 50

Other Assets, LT Other Assets, LT 223 223 Total AssetsTotal Assets $ 2,169$ 2,169

Assets 2007 2006 +/- S/UAssets 2007 2006 +/- S/U



$ 295 - U$ 295 - U 94 --94 -- 16 --16 -- 100100 -- --$$ 505 505 N/AN/A

453 453 + S+ S

200 --200 -- 729 --729 -- 157157 + S + S$ $ 1086 1086 N/A N/A$ 2,044$ 2,044

$ 295 - U$ 295 - U 94 --94 -- 16 --16 -- 100100 -- --$$ 505 505 N/AN/A

453 453 + S+ S

200 --200 -- 729 --729 -- 157157 + S + S$ $ 1086 1086 N/A N/A$ 2,044$ 2,044

Notes Payable $ 290 Notes Payable $ 290 Acct. PayableAcct. Payable 94 94 Accrued TaxesAccrued Taxes 16 16 Other Accrued Liab. Other Accrued Liab. 100 100

Current Liab.Current Liab. $ 500 $ 500 Long-Term DebtLong-Term Debt 530 530 Shareholders’ EquityShareholders’ Equity Com. Stock ($1 par)Com. Stock ($1 par) 200200 Add Pd in CapitalAdd Pd in Capital 729 729 Retained EarningsRetained Earnings 210 210

Total EquityTotal Equity $ $ 1,1391,139

Total Liab/EquityTotal Liab/Equity $ $ 2,1692,169

Liabilities and Equity 2007 2006 +/- S/ULiabilities and Equity 2007 2006 +/- S/U



$ 295 $ 5 U$ 295 $ 5 U 94 --94 -- 16 --16 -- 100100 -- --$$ 505 505 N/AN/A

453 453 77 S77 S

200 --200 -- 729 --729 -- 157157 53 S 53 S$ $ 1086 1086 N/A N/A$ 2,044$ 2,044

$ 295 $ 5 U$ 295 $ 5 U 94 --94 -- 16 --16 -- 100100 -- --$$ 505 505 N/AN/A

453 453 77 S77 S

200 --200 -- 729 --729 -- 157157 53 S 53 S$ $ 1086 1086 N/A N/A$ 2,044$ 2,044

Notes Payable $ 290 Notes Payable $ 290 Acct. PayableAcct. Payable 94 94 Accrued TaxesAccrued Taxes 16 16 Other Accrued Liab. Other Accrued Liab. 100 100

Current Liab.Current Liab. $ 500 $ 500 Long-Term DebtLong-Term Debt 530 530 Shareholders’ EquityShareholders’ Equity Com. Stock ($1 par)Com. Stock ($1 par) 200200 Add Pd in CapitalAdd Pd in Capital 729 729 Retained EarningsRetained Earnings 210 210

Total EquityTotal Equity $ $ 1,1391,139

Total Liab/EquityTotal Liab/Equity $ $ 2,1692,169

Liabilities and Equity 2007 2006 +/- S/ULiabilities and Equity 2007 2006 +/- S/U

USESUSES $156$156

Increase, InventoriesIncrease, Inventories $80 $80

Increase, Accum Tax PrepayIncrease, Accum Tax Prepay 1 1

Decrease, Notes PayableDecrease, Notes Payable 5 5

Increase, Net Fixed AssetsIncrease, Net Fixed Assets 70 70

$156$156

USESUSES $156$156

Increase, InventoriesIncrease, Inventories $80 $80

Increase, Accum Tax PrepayIncrease, Accum Tax Prepay 1 1


Increase, Net Fixed AssetsIncrease, Net Fixed Assets 70 70

$156$156

SOURCESSOURCES

Increase, Retained EarningsIncrease, Retained Earnings $ 53$ 53

Decrease, Accounts ReceivableDecrease, Accounts Receivable 16 16

Increase, Long-Term Debt Increase, Long-Term Debt 77 77

Decrease, Cash + Cash Equivalents 10Decrease, Cash + Cash Equivalents 10

““Basic” Sources Basic” Sources and Uses Statementand Uses Statement““Basic” Sources Basic” Sources and Uses Statementand Uses Statement

Adjusting the “Basic” Adjusting the “Basic” Sources and Uses StatementSources and Uses Statement


The following three slides are Basket The following three slides are Basket Wonders’ Balance Sheet and Income Wonders’ Balance Sheet and Income

Statement.Statement.

This information will be needed to This information will be needed to adjust the “basic” Sources and Uses adjust the “basic” Sources and Uses


The following three slides are Basket The following three slides are Basket Wonders’ Balance Sheet and Income Wonders’ Balance Sheet and Income


This information will be needed to This information will be needed to adjust the “basic” Sources and Uses adjust the “basic” Sources and Uses


Basket Wonders’ Balance Basket Wonders’ Balance Sheet (Asset Side)Sheet (Asset Side)

Basket Wonders’ Balance Basket Wonders’ Balance Sheet (Asset Side)Sheet (Asset Side)

a. How the firm stands on a a. How the firm stands on a specific date.specific date.

b. What BW owned.b. What BW owned.c. Amounts owed by customers.c. Amounts owed by customers.d. Future expense items already d. Future expense items already

paid.paid.e. Cash/likely convertible to cash e. Cash/likely convertible to cash

within 1 year.within 1 year.f. Original amount paid.f. Original amount paid.g. Acc. deductions for wear and g. Acc. deductions for wear and

tear. tear.

a. How the firm stands on a a. How the firm stands on a specific date.specific date.

b. What BW owned.b. What BW owned.c. Amounts owed by customers.c. Amounts owed by customers.d. Future expense items already d. Future expense items already

paid.paid.e. Cash/likely convertible to cash e. Cash/likely convertible to cash

within 1 year.within 1 year.f. Original amount paid.f. Original amount paid.g. Acc. deductions for wear and g. Acc. deductions for wear and

tear. tear.

Cash and C.E. Cash and C.E. $ 90 $ 90 Acct. Rec.Acct. Rec.cc 394 394 InventoriesInventories 696 696 Prepaid ExpPrepaid Exp dd 5 5 Accum Tax PrepayAccum Tax Prepay 10 10 Current AssetsCurrent Assetsee $ 1,195 $ 1,195 Fixed Assets (@Cost)Fixed Assets (@Cost)ff 1030 1030 Less: Acc. Depr. Less: Acc. Depr. gg (329) (329)

Net Fix. AssetsNet Fix. Assets $ 701 $ 701 Investment, LTInvestment, LT 50 50 Other Assets, LTOther Assets, LT 223 223

Total AssetsTotal Assets bb $2,169 $2,169

Basket Wonders Balance Sheet (thousands) Dec. 31, 2007Basket Wonders Balance Sheet (thousands) Dec. 31, 2007a

Basket Wonders’ Balance Basket Wonders’ Balance Sheet (Liability Side)Sheet (Liability Side)

Basket Wonders’ Balance Basket Wonders’ Balance Sheet (Liability Side)Sheet (Liability Side)

a. Note, Assets = Liabilities + a. Note, Assets = Liabilities + Equity.Equity.

b. What BW owed and ownership b. What BW owed and ownership position.position.

c. Owed to suppliers for goods c. Owed to suppliers for goods and services.and services.

d. Unpaid wages, salaries, etc.d. Unpaid wages, salaries, etc.e. Debts payable < 1 year.e. Debts payable < 1 year.f. Debts payable > 1 year.f. Debts payable > 1 year.g. Original investment. g. Original investment. h. Earnings reinvested.h. Earnings reinvested.

a. Note, Assets = Liabilities + a. Note, Assets = Liabilities + Equity.Equity.

b. What BW owed and ownership b. What BW owed and ownership position.position.

c. Owed to suppliers for goods c. Owed to suppliers for goods and services.and services.

d. Unpaid wages, salaries, etc.d. Unpaid wages, salaries, etc.e. Debts payable < 1 year.e. Debts payable < 1 year.f. Debts payable > 1 year.f. Debts payable > 1 year.g. Original investment. g. Original investment. h. Earnings reinvested.h. Earnings reinvested.

Notes PayableNotes Payable $ $ 290 290 Acct. PayableAcct. Payablecc 94 94 Accrued TaxesAccrued Taxes dd 16 16 Other Accrued Liab.Other Accrued Liab. dd 100 100 Current Liab.Current Liab. ee $ $ 500 500 Long-Term DebtLong-Term Debt ff

530530 Shareholders’ EquityShareholders’ Equity Com. Stock ($1 par) Com. Stock ($1 par) gg

200200 Add Pd in CapitalAdd Pd in Capital gg

729 Retained 729 Retained EarningsEarnings hh 210 210 Total Total EquityEquity $ $1,1391,139 Total Liab/EquityTotal Liab/Equitya,ba,b $2,169 $2,169

Basket Wonders Balance Sheet (thousands) Dec. 31, 2007Basket Wonders Balance Sheet (thousands) Dec. 31, 2007

Basket Wonders’ Basket Wonders’ Income StatementIncome StatementBasket Wonders’ Basket Wonders’ Income StatementIncome Statement

a. Measures profitability over a a. Measures profitability over a time period.time period.

b. Received, or receivable, from b. Received, or receivable, from customers.customers.

c. Sales comm., adv., officer’s c. Sales comm., adv., officer’s salaries, etc.salaries, etc.

d. Operating income.d. Operating income.e. Cost of borrowed funds.e. Cost of borrowed funds.f. Taxable income.f. Taxable income.g. Amount earned for g. Amount earned for

shareholders. shareholders.

a. Measures profitability over a a. Measures profitability over a time period.time period.

b. Received, or receivable, from b. Received, or receivable, from customers.customers.

c. Sales comm., adv., officer’s c. Sales comm., adv., officer’s salaries, etc.salaries, etc.

d. Operating income.d. Operating income.e. Cost of borrowed funds.e. Cost of borrowed funds.f. Taxable income.f. Taxable income.g. Amount earned for g. Amount earned for

shareholders. shareholders.

Net SalesNet Sales $ 2,211 $ 2,211 Cost of Goods SoldCost of Goods Sold bb 1,599 1,599Gross ProfitGross Profit $ 612 $ 612 SG&A ExpensesSG&A Expenses c c 402 402 EBITEBITdd $ $ 210 210 Interest ExpenseInterest Expenseee 59 59 EBTEBT f f $ $ 151 151 Income TaxesIncome Taxes 60 60

EATEATgg $ 91 $ 91 Cash DividendsCash Dividends 38 38 Increase in REIncrease in RE $ 53 $ 53

Basket Wonders Statement of Earnings (in thousands) Basket Wonders Statement of Earnings (in thousands) for Year Ending December 31, 2007for Year Ending December 31, 2007a



Recognize Profits and DividendsRecognize Profits and DividendsChange in retained earnings is composed of profits and Change in retained earnings is composed of profits and

dividends.dividends.

Source:Source: Net ProfitNet Profit $91$91

Less Use:Less Use: Cash DividendsCash Dividends 38 38

(Net) Source: Incr., R.E(Net) Source: Incr., R.E .. $53$53

Recognize Profits and DividendsRecognize Profits and DividendsChange in retained earnings is composed of profits and Change in retained earnings is composed of profits and

dividends.dividends.

Source:Source: Net ProfitNet Profit $91$91

Less Use:Less Use: Cash DividendsCash Dividends 38 38

(Net) Source: Incr., R.E(Net) Source: Incr., R.E .. $53$53



Recognize Depreciation and Gross Changes Recognize Depreciation and Gross Changes in Fixed Assetsin Fixed Assets

Change in net fixed assets is composed of depreciation and Change in net fixed assets is composed of depreciation and fixed assets.fixed assets.

Source:Source: Depreciation $ 30 Depreciation $ 30

Less Use:Less Use: Add. to F.A. Add. to F.A. 100 100

(Net) Use: Incr., Net F.A. (Net) Use: Incr., Net F.A. $ 70$ 70

Recognize Depreciation and Gross Changes Recognize Depreciation and Gross Changes in Fixed Assetsin Fixed Assets

Change in net fixed assets is composed of depreciation and Change in net fixed assets is composed of depreciation and fixed assets.fixed assets.

Source:Source: Depreciation $ 30 Depreciation $ 30

Less Use:Less Use: Add. to F.A. Add. to F.A. 100 100

(Net) Use: Incr., Net F.A. (Net) Use: Incr., Net F.A. $ 70$ 70

SOURCESSOURCES

Funds provided by operationsFunds provided by operations

Net ProfitNet Profit $ 91$ 91

DepreciationDepreciation 30 30

Decrease, Accounts ReceivableDecrease, Accounts Receivable 16 16

Increase, Long-Term Debt Increase, Long-Term Debt 77 77

Decrease, Cash + Cash Equivalents Decrease, Cash + Cash Equivalents 10 10

$224$224

Sources and Uses Sources and Uses Statement (Sources Side)Statement (Sources Side)

Sources and Uses Sources and Uses Statement (Sources Side)Statement (Sources Side)

USESUSES

DividendsDividends $ 38$ 38

Additions to fixed assetsAdditions to fixed assets 100 100

Increase, InventoriesIncrease, Inventories 80 80

Increase, Accum. Tax PrepayIncrease, Accum. Tax Prepay 1 1


$224$224

Sources and Uses Sources and Uses Statement (Uses Side)Statement (Uses Side)

Sources and Uses Sources and Uses Statement (Uses Side)Statement (Uses Side)

Analyzing the Sources Analyzing the Sources and Uses Statementand Uses Statement

Analyzing the Sources Analyzing the Sources and Uses Statementand Uses Statement

UsesUsesPrimarily through an Primarily through an

increase in inventories increase in inventories and expenditures on and expenditures on

capital assets.capital assets.

UsesUsesPrimarily through an Primarily through an

increase in inventories increase in inventories and expenditures on and expenditures on

capital assets.capital assets.

SourcesSourcesPrimarily through Primarily through

net profit from net profit from operations and operations and long-term debt long-term debt

increases.increases.

Statement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash Flows

operating activitiesoperating activities,,

investing activitiesinvesting activities, and, and

financing activitiesfinancing activities..

operating activitiesoperating activities,,

investing activitiesinvesting activities, and, and

financing activitiesfinancing activities..

This statement reports cash This statement reports cash inflowsinflows and and outflowsoutflows based on the firm’s based on the firm’s

A summary of a firm’s payments during a period of time.

Statement of Cash FlowsStatement of Cash FlowsCash Flow from Operating ActivitiesCash Flow from Operating Activities

Shows impact of transactions not defined as Shows impact of transactions not defined as investing or financing activities. investing or financing activities.

These cash flows are generally the cash effects of These cash flows are generally the cash effects of transactions that enter into the determination of net transactions that enter into the determination of net income.income.

Cash Flow From Cash Flow From Operating ActivitiesOperating Activities

Cash InflowsCash InflowsFrom sales of goods or servicesFrom sales of goods or servicesFrom interest and dividend incomeFrom interest and dividend income

Cash OutflowsCash OutflowsTo pay suppliers for inventoryTo pay suppliers for inventoryTo pay employees for servicesTo pay employees for servicesTo pay lenders (interest)To pay lenders (interest)To pay government for taxesTo pay government for taxesTo pay other suppliers for other operating expensesTo pay other suppliers for other operating expenses

Statement of Cash FlowsStatement of Cash FlowsStatement of Cash FlowsStatement of Cash Flows

Cash Flow from Financing ActivitiesCash Flow from Financing Activities Shows impact of all cash transactions with shareholders Shows impact of all cash transactions with shareholders

and the borrowing and repaying transactions with and the borrowing and repaying transactions with lenders.lenders.

Cash Flow from Financing ActivitiesCash Flow from Financing Activities Shows impact of all cash transactions with shareholders Shows impact of all cash transactions with shareholders

and the borrowing and repaying transactions with and the borrowing and repaying transactions with lenders.lenders.

Cash Flow from Investing ActivitiesCash Flow from Investing Activities

Shows impact of buying and selling fixed Shows impact of buying and selling fixed assets and debt or equity securities of other assets and debt or equity securities of other

entities.entities.

Cash Flow From Cash Flow From Investing ActivitiesInvesting Activities

Cash InflowsCash InflowsFrom sale of fixed assets (property, plant, equipment)From sale of fixed assets (property, plant, equipment)From sale of debt or equity securities (other than common equity) of From sale of debt or equity securities (other than common equity) of

other entitiesother entities

Cash OutflowsCash OutflowsTo acquire fixed assets (property, plant, equipment)To acquire fixed assets (property, plant, equipment)To purchase debt or equity securities (other than common equity) of To purchase debt or equity securities (other than common equity) of

other entitiesother entities

Cash Flow From Cash Flow From Financing ActivitiesFinancing Activities

Cash InflowsCash InflowsFrom borrowingFrom borrowingFrom the sale of the firm’s own equity securitiesFrom the sale of the firm’s own equity securities

Cash OutflowsCash OutflowsTo repay amounts borrowedTo repay amounts borrowedTo repurchase the firm’s own equity securitiesTo repurchase the firm’s own equity securitiesTo pay shareholders dividendsTo pay shareholders dividends

Indirect Method -- Indirect Method -- Statement of Cash FlowsStatement of Cash Flows

Cash Flow from Operating ActivitiesCash Flow from Operating Activities

Net IncomeNet Income $ 91$ 91DepreciationDepreciation 30 30Decrease, accounts receivableDecrease, accounts receivable 16 16Increase, inventoriesIncrease, inventories ( 80) ( 80)Increase, accum. tax prepayIncrease, accum. tax prepay ( 1) ( 1)

Net cash provided (used) by operating activities Net cash provided (used) by operating activities $ 56 $ 56


Cash Flow from Investing ActivitiesCash Flow from Investing Activities

Additions to Fixed AssetsAdditions to Fixed Assets $(100)$(100)

Net cash provided (used) byNet cash provided (used) by investing activities investing activities$(100)$(100)


Cash Flow from Financing ActivitiesCash Flow from Financing Activities

Increase, notes payableIncrease, notes payable $ ( 5)$ ( 5)Increase, long-term debtIncrease, long-term debt 77 77

Dividends paidDividends paid ( 38) ( 38)

Net cash provided (used) by financing activitiesNet cash provided (used) by financing activities $ 34$ 34


Increase (decrease) in cash and cash equivalentsIncrease (decrease) in cash and cash equivalents $ ( 10)$ ( 10)Cash and cash equivalents, 2006 Cash and cash equivalents, 2006 100 100

Cash and cash equivalents, 2007 Cash and cash equivalents, 2007 $ $ 9090

Supplemental cash flow disclosuresSupplemental cash flow disclosuresInterest paidInterest paid $ 59$ 59Taxes paidTaxes paid 60 60

Funds Analysis, Cash-Flow Analysis, and Financial Planning

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Transcript of Funds Analysis, Cash-Flow Analysis, and Financial Planning