Reading: Extensions and FAQ
Abschlussbedingungen
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A solid financial plan is the basis of every valuation exercise and every significant management decision. The financial plan allows us to identify the firm's capital needs as well as its ability to generate cash. It also unveils the various sources and uses of funds. This section shows how to set up a financial plan.
1. Extensions and FAQ
Let's have a look at some issues that frequently arise when putting together cash flow statements:
- How to distinguish between Operating cash and Excess cash?
- What if the firm earns interest income?
- What if there are non-operating items in the firm's "operating expenses"?
- What if the firm engages in share repurchases?
- What's the difference between our finance cash flow statements and the accounting cash flow statements that most firms prepare?
Let's look at these important questions in detail.