Question:

How do you calculate Free Cash Flow?

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Answer:

EBIT* (1-tax rate)
+ Depreciation and Amortization
- Change in net working capital
- CapEx
= Free Cash Flow

Other

Accounting

If depreciation is a non-cash expense, why does it affect the cash balance on the Cash Flow Statement?

Accounting

What is the difference between deferred revenue and accounts receivable?

Accounting

Does Goodwill get amortized?

Accounting

What is goodwill?

Accounting

How does $10 of Depreciation affect the three financial statements?

Accounting

A company makes a $100 cash purchase of equipment on Dec. 31. How does this impact the three statements this year and next year?

Accounting

What are deferred tax assets and liabilities?

Accounting

How do the 3 financial statements tie together?

Accounting

What is the relationship between CapEx and Depreciation?

Accounting

How does Inventory increasing by $10 affect the three financial statements?

Accounting

What are some of the major line items on the Income Statement?

Accounting

What is Operating Margin?

Accounting

Where can you find Depreciation on the Income Statement?

Accounting

What flows into Retained Earnings?

Accounting

Walk me through the three financial statements

Accounting

What is Goodwill Impairment?

Accounting

How does a company decide when to capitalize or expense a purchase?

Accounting

What's the difference between capital leases and operating leases?

Accounting

Question:

How do you calculate Free Cash Flow?

Answer:

Other

Accounting

Why isn't the Income Statement affected by changes in Inventory?

What is the difference between goodwill and intangible assets?

Walk me through how $10 of Depreciation affects the three financial statements

What is working capital?

How is goodwill calculated?

What are some ways that companies can manipulate their earnings?

What are some of the major line items on the Balance Sheet?

What does it mean if a company has negative Working Capital?

What is gross margin?

Is it possible to have negative Shareholder's Equity? If so, how?

What happens to the three financial statements if we use PIK interest?

How do you calculate LTM (last twelve months) financials?

What is amortization?

What are some of the major line items on the Cash Flow Statement?

What is gross profit?

If depreciation is a non-cash expense, why does it affect the cash balance on the Cash Flow Statement?

What is the difference between deferred revenue and accounts receivable?

Does Goodwill get amortized?

What is goodwill?

How does $10 of Depreciation affect the three financial statements?

A company makes a $100 cash purchase of equipment on Dec. 31. How does this impact the three statements this year and next year?

What are deferred tax assets and liabilities?

How do the 3 financial statements tie together?

What is the relationship between CapEx and Depreciation?

How does Inventory increasing by $10 affect the three financial statements?

What are some of the major line items on the Income Statement?

What is Operating Margin?

Where can you find Depreciation on the Income Statement?

What flows into Retained Earnings?

Walk me through the three financial statements

What is Goodwill Impairment?

How does a company decide when to capitalize or expense a purchase?

What's the difference between capital leases and operating leases?

What are some examples of non-recurring charges that would be added back to a company's EBITDA?

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