Finance General Terms

Card Set Information

Author:
jordanfawson
ID:
123423
Filename:
Finance General Terms
Updated:
2011-12-13 14:53:15
Tags:
Finance General Terms
Folders:

Description:
Finance General Terms
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user jordanfawson on FreezingBlue Flashcards. What would you like to do?


  1. Revenues
    Revenues (R)= Price * Quantity
  2. Expenses
    Expenses= (Direct expenses+ Ooverheads and other fixed expenses)
  3. Depreciation
    Depreciation (D)
  4. Tax rate
    Tax rate (T)
  5. ^ NWC
    ^NWC= Change (or investment) in working capital
  6. ^FA
    ^FA= Change in fixed assets or capital expenditure (net out taxes if any)
  7. Cash Flows
    CF= (R-E-D) * (1-T) + D - ^NWC - ^FA
  8. NOPAT
    Net operating profit after tax. (R-E-D) * (1-T)
  9. Operating cash flows
    • NOPAT with the addition of depreciation (or other nontax deductions such as deferred taxes)
    • (R-E-D) * (1-T) + D

What would you like to do?

Home > Flashcards > Print Preview