Financial Management -free cash flow (FCF) project
This week you have a free cash flow (FCF) project. It will take approximately 2 to 3 hours to complete. Go to the Assignments link. Look at week 4 project for directions and to download the template. Email to me the FCF prpoject as an attachment using course email BEFORE Feb. 15th You only have one attempt.
Go to finance.yahoo.com (Links to an external site.) (press CTRL and click) and select a company. After you enter the symbol or company name, you will see data concerning its stock price. Above this stock data, you will see several headings: Summary, Chart Conversations etc. You will also see a link titled Financials. Click on the Financial link and you will see links to Income Statement and Balance Sheet. Type in the balance sheet as indicated in the template. You may enter the income statement amounts directly into the template (the top portion). This project serves two purposes: 1) it familiarizes you with the concept of Free Cash Flow (FCF) and 2) it provides an opportunity to use Excel. Note: When calculating FCF do not type in the numbers but identify the numbers based on their location, e.g. B21 and use “Excelize” (=b4-b5) to make calculations. If an account is blank for all three years, you do not need to waste your time typing in the account name. Do not use a – (dash to represent 0). Type in 0. Excel does not know what a – represents and you will have error messages. Once you calculate FCF for 2019, all you have to do is copy and paste it in the 2018 column to get get FCF for 2018. See the template for more directions. This project is due on or before April 14. NOTE: LOOK AT SOME OF THE EXCEL TUTORIALS TO FAMILIARIZE YOURSELF WITH EXCEL.
Please download and read the Free Cash Flow Lecture Notes and cash flow project template. Read the assigned chapter. Do the homework assignment and complete the quiz.
The project when completed will look something like this click here. Note: I will grade this project based on the excel formulas you use to calculate NOPAT, OCA, OCL, NOWC, TOC, and FCF.
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