Exam 1

OCF

EBIT+ Dep. - Taxes

Cash flow to creditors

Interest paid - Net New Borrowing

Cash flow to stockholders

Dividends paid - net new equity raised

CF from assets - CF to creditors

Investing cash flow

Change in net fixed assets + Dep.

Financing cash flow

Change in NP + change LTD + change in stock - dividends

Change in cash

Operating - investing - financing

Cash flow from assets

OCF - NCS - Change NWC

Net New borrowing

Debt issued - debt retired

Self dealing

Decisions made to prioritize oneself instead of the company. Jets, cars, personal bank, insider trade

Entrenchment

Makes it hard to fire; golden parachute, family/friends on BoD

Extravagant investment

Buying everyone and everything to build an empire.

Insufficient effort

Not trying enough on behalf of the company; not getting the best contract for the firm,etc

Source of cash

Decrease in asset account, increase in liability or equity

Use of cash

Increase in asset accounts, decrease in liability or equity

Net new borrowing

End. LTD - Beg. LTD

Net new equity raised

Change in CS and Paid-in-surplus account

NCS

End. NFA - Beg. NFA + Dep