FS to FCF Template Based on historical financial data, find FCF for the company of your choice.
1. In week 1 you were asked to choose a publicly traded company and submit its name for instructor's
approval. Assuming 2. Download annual financial data for the last 5 years from Edgar Website (forms 10-K). Attention: if your
company became public less than 5 years ago, you will also have to download data from its IPO filing
prospectus (form 424B4). Template below is approximate, you may modify it to suit your company 3. Using approach similar to the one described in this module's Excel file you will have to calculate the FCF
for the company of your choice Solution Legend
Value given in problem
Formula/Calculation/Analysis required
Qualitative analysis or Short answer required If you have difficulty estimating company's tax rate you may assume statutory tax rate of 35% Financial Data
Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Year 1
Current Assets, other than Cash and Marketable Securities
Current Liabilities, excluding Debt
Net Working Capital (CA-CL) Year 2 Year 3 Year 4 Year 5 Year 2 Year 3 Year 4 Year 5 Assets
Cash & Short Term Investments
Short-term Investments
Receivables
Inventories
Prepaid Expenses
Total Current Assets
Net Property, Plant & Equipment
Total Assets
Liabilities
Accounts payable
Current maturities of long-term debt
Income taxes payable
Total current liabilities
Long-term debt
Total Liabilities
Total stockholders’ equity (deficit)
Total Liabilities & Shareholder's Equity Income Statement
Revenue
Total revenues
Expenses
Cost of Goods Sold
General, administrative and other
Depreciation and amortization
Total expenses
Operating income
Interest expense
Income before income taxes
Income tax benefit (expense)
Net income
Dividends Paid
Non-distributed Income Find Changes in NWC Change in NWC (NWC Investment)
Find CapEx
Year 1
Net Property, Plant & Equipment
Depreciation and amortization
Capex
You can read more using the following link Howard Keen, Clearing Up Confusion over calculation of FCF. Estimate FCF
If you have difficulty estimating company's tax
rate you may assume statutory tax rate of 35% Tax Rate
Year
Year 1 Year 2 Year 3 Year 4 Year 5 EBIT
EBIT(1-T) = NOPAT
Plus: Depreciation Expense
Less: CAPEX
Less: Working Capital Investment
Firm Free Cash Flow Page 1

  • 7 years ago
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