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Pristine Finance for Non-Finance Managers
2012
Cash Flow Statement for Accenture
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine
2 © Neev Knowledge Management – Pristine
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Operating Cash
Source: Acccenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
3
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Cash Flow from Operations
Cash Generated From Operations includes the profits + Non cash items+ Other Cash from Operations
Working capital changes are adjusted
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
4
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Investing Cash
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
5
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Cash Flow from Investing
Purchase of fixed assets results in significant use of cash
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
6
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Financing Cash
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
7
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Cash Flow from Financing
+ve Cash from financing implying additional outside capital
-ve Cash from financing imply Repayment of Capital
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
8
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Profit Vs Cash Flow: An Example Pristine, a leader in financial training, sells books for the CFA Certification. For printing the books, it borrows papers worth $3,00,000 on credit for 4 months in January 2009. It takes approximately 1 month to print the book and another one month to sell them to the students. By 31st March , 2009, Pristine had sold all the books and received $10,00,000 in cash collection. 1. How shall be the profit of Pristine for FY2009 if no other transaction has taken place. 2. What shall be the cash balance of Pristine at the end of FY2009 if no other transaction had taken place.
Accounting Profit and Real Cash inflow may not be same for a period
© Neev Knowledge Management – Pristine
9 © Neev Knowledge Management – Pristine
www.edupristine.com
Pristine Finance for Non-Finance Managers
2012
Cash Flow Statement for Accenture
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine
2 © Neev Knowledge Management – Pristine
www.edupristine.com
Operating Cash
Source: Acccenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
3
www.edupristine.com
Cash Flow from Operations
Cash Generated From Operations includes the profits + Non cash items+ Other Cash from Operations
Working capital changes are adjusted
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
4
www.edupristine.com
Investing Cash
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
5
www.edupristine.com
Cash Flow from Investing
Purchase of fixed assets results in significant use of cash
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
6
www.edupristine.com
Financing Cash
Source: Accenture, Annual Report 2010 - 2011
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
7
www.edupristine.com
Cash Flow from Financing
+ve Cash from financing implying additional outside capital
-ve Cash from financing imply Repayment of Capital
© Neev Knowledge Management – Pristine © Neev Knowledge Management – Pristine
8
www.edupristine.com
Profit Vs Cash Flow: An Example Pristine, a leader in financial training, sells books for the CFA Certification. For printing the books, it borrows papers worth $3,00,000 on credit for 4 months in January 2009. It takes approximately 1 month to print the book and another one month to sell them to the students. By 31st March , 2009, Pristine had sold all the books and received $10,00,000 in cash collection. 1. How shall be the profit of Pristine for FY2009 if no other transaction has taken place. 2. What shall be the cash balance of Pristine at the end of FY2009 if no other transaction had taken place.
Accounting Profit and Real Cash inflow may not be same for a period
© Neev Knowledge Management – Pristine
9 © Neev Knowledge Management – Pristine
www.edupristine.com
