Need some ideas and guides about solving this problem,

Assume there is a company, it requires constructing the 5-year historical balance sheet and profit and loss statement.

1. Collect the historical balance sheet and profit and loss statements for the previous 5 years from the company website or other sources.

2. Reconstruct the profit and loss statements in the format of Operating Cashflow as discussed in class.

OCF = (Revenue - Expenditure) (1 - tc) + Depreciation x tc

Use tc = 27.5%

3. You should use your judgement to determine whether the items in the P&L are cash or non-cash.

4. You may assume a percentage of the revenue/expenditure is cash.

5. State and explain your assumptions.