The statement of cash flows
has been a required part of annual financial statements for more than two years.
The proposed credit agreement requires that the Borrower use excess cash flow
to prepay the first lien term loan.
7, Using Cash Flow
Information and Present Value in Accounting Measurement, provides a framework for using future cash flows
as the basis for accounting measurements.
104, Statement of Cash Flows
- Net Reporting of Certain Cash Receipts and Cash Payments and Classification of Cash Flows
from Hedging Transactions, permits banks, savings institutions and credit unions to report in a cash flow
statement net cash receipts and payments for deposits placed and withdrawn, time deposits accepted and repaid, and loans made and collected.
Free cash flow
is more comparable to net income than operating cash flows
because net income includes a subtraction for depreciation charges.
We arrogantly determined that discounted cash flow
didn't make any sense in valuing a company in this new world.
Such portfolio models facilitate a variety of analyses, including projection of aggregate expected cash flows
, calculation of a portfolio value, reserve development and analysis of reinsurance arrangements.
The decrease in cash flow
and investment return may result in disgruntled investors.
At the second stage, the determination of net future cash flows
calls for an estimate of the future cash inflows and outflows--undiscounted.
A more powerful approach is to link cash flows
to operating variables, which allows us to calculate stock valuations directly from an operating executive's point of view.
As diagram B shows, the best explanation is the present value mechanism based on the time value theory of money concept from economics, which asserts that cash flows
are more valuable when they occur more quickly, are larger and are more certain.
Dividends and other cash flows
(after withholding and other transfer taxes) from the operating companies to the holding company should exceed US$450 million annually over the next several years.