Question: Why there is any different result when we are calculating operating cash flow using the bottom up approach and top down approach? Please explain it

Why there is any different result when we are calculating operating

Why there is any different result when we are calculating operating cash flow using the bottom up approach and top down approach? Please explain it clearly

Sales COGS Depreciation EBIT Interest Taxable income Tax NI 228.000.000 (160.500.000) (40.500.000) 27.000.000 (18.300.000) 8.700.000 (2.958.000) 5.742.000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q. Was the outcome for these companies inevitable? BALANCED SCORECARD INSTITUTE Straten Management Group Veolia Water North America Case Study O VEOLIA The Situation Based in Chicago, Veolia Water...

Can you please show me HOW to solve these? Thank you... 1) A 6 -year project has an initial fixed asset investment of $42,840, an initiaINWC investment of $4,080, and an annual OCF of -$65,280. The...

Calculate operating Cash flow using the four different approaches... A) EBIT + Depr. - Taxes... B) Top Down Approach: Revenues - Expenses - Taxes or Cash inflows - cash outflows... C) Tax Shield: (S...

A proposed new project has projected sales of $137,700, costs of $69,660, and depreciation of $4,860. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches....

A proposed new project has projected sales of $197,200, costs of $99,760, and depreciation of $6,960. The tax rate is 23 percent. Calculate operating cash flow using the four different approaches....

Assume a project that has an installed cost of $210,000. New sales of 60,000 units each year will occur with a sales price of $4.5 per unit, variable costs per unit are $3.00 and fixed costs each...

A proposed new project has projected sales of $125,000, costs of $59,000, and depreciation of $12,800. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches....

A proposed new project has projected sales of $127,500, costs of $64,500, and depreciation of $4,500. The tax rate is 22 percent Calculate operating cash flow using the four different approaches. The...

A proposed new project has projected sales of 5178 500 as of 590 300 and depreciation of $6300. The alates 31 percent Calculate operating cash flow using the four different approaches Requirement The...

Please see the snap photo below for further instructions. thank you 1. Read the Electrolux and GE Applianceh 2. \"the Excel spreadsheet template prov1 e posted N 3 Answer the following questions....

Shirley Sze incorporated Shirley's Snack Shop on April 30, 2011, by investing $5,000 in cash. The following is a summary of the other events affecting the business during its first eight months of...

England, Inc., a furniture manufacturer in Tazewell, Tennessee, has found a competitive advantage and increasing sales through speed in delivering customer orders. England, Inc. uses precision...

9. What are the different bases for share valuation when assets other than cash are received for issued shares?

More often than not, corporate culture is absorbed by observation and interaction with co - workers after being hired. an indirect influence on job performance. the first thing covered during new...

How often and under what circumstances do your customers go ballistic?

How can you give feedback to your colleagues in such a way that you maintain strong, effective working relationships?

Every time we get passed from one department to another without being helped and we dont speak up, we allow the company to not improve its internal communications.