FS to FCF Template
Solution Legend
Value given in problem
Formula/Calculation/Analysis required
Qualitative analysis or Short answer required
Financial Data
Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Cash & Cash Equivalents
Short-term Investments
Receivables
Inventories
Prepaid Expenses
Total Cu
ent Assets
Net Property, Plant & Equipment
Total Assets
Liabilities
Accounts payable
Cu
ent maturities of long-term debt
Income taxes payable
Total cu
ent liabilities
Long-term debt
Total Liabilities
Total stockholders’ equity (deficit)
Total Liabilities & Shareholder's Equity
Income Statement Year 1 Year 2 Year 3 Year 4 Year 5
Revenue
Total revenues
Expenses
Cost of Goods Sold
General, administrative and othe
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
Year 1 Year 2 Year 3 Year 4 Year 5
Cu
ent Assets, other than Cash and Marketable Securities
Cu
ent Liabilities, excluding Debt
Net Working Capital (CA-CL)
Change in NWC (NWC Investment)
Find CapEx
Year 1 Year 2 Year 3 Year 4 Year 5
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
Tax Rate
DL: If you have difficulty estimating company's tax rate you may assume statutory tax rate of 35% before 2018 and 21% thereafte
Yea
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
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 (change, delete, or add rows), 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
If you have difficulty estimating company's tax rate you may assume statutory tax rate of 35% for years before 2018.
For submission, Excel file is enough
http:
www.jgbm.org/page/1%20Howard%20Keen.pdf