Calculate the appropriate free cash flow number as of ifrs

Assignment Help Accounting Basics
Reference no: EM13568792

In its 2012 report, Volkswagen included the following cash-flow statement (in millions)


2012 2011
Profit before taxes 25492 18926
Income taxes paid (5056) (3269)
Cash Flow from operating activities:

Net depreciation on intangibles, PP&E, investment property 7617 5969
Net depreciation on capitalized development cost 1903 1697
Net depreciation on leased assets 3594 2667
Gains from At Equity Investments (11512) (715)
Other changes in accruals (2043) (6446)
Changes in inventories 465 (4234)
Changes of operating receivables/liabilities (292) 836
Changes of provisions 465 3960
Changes of leased assets (5606) (4090)
Changes of financial receivables (7814) (6811)
Cash Flow from operating activities 7209 8500
Cash flow from investing activities:

Investmnets in intangibles, PP&E and investment property (10493) (8087)
Changes in capitalized development costs (2615) (1666)
Acquisition of businesses (net) (4106) (6389)
Gains from disposal of intangibles PP&E, investment property 373 140
Changes of investments in financial securities (1133) (699)
Changes of other financial assets (1510) (1931)
Cash flow from investing activities (19482) (18631)
Cash flow from financing activities:

Capital contributions 2046 3
Dividend payments (1673) (1266)
Capital transactions with non-controlling interests (2101) (355)
Issue of bonds 26055 16715
Retirements of bonds (16952) (11603)
Other changes of net debt and capital 6468 4782
Lease payments (132) 19
Cash flow from financing activities 1298 (1733)
Closing Cash 13712 16495






An analyst made a calculation of free cash flow from these numbers as follows:


2012 2011
Cash Flow from operating activities 7209 8500
Cash flow from investing activities (19482) (18631)
Free Cash Flow (12273) (10131)

Calculate the appropriate free cash flow number (as of IFRS) for the years 2011, 2012. What mistakes is the analyst making?

Reference no: EM13568792

Questions Cloud

A share of preferred stock pays a quarterly dividend of : a share of preferred stock pays a quarterly dividend of 1.00. if the price of the stock is 50 what is the nominal not
Calculate the unit contribution for regis steel division if : raddington industries produces tools and die machinery for various manufacturers. 2 years ago the company expanded
Pare an essay 750-1000 words in which you review and : prepare an essay 750-1000 words in which you review and compare the three articles you have selected for this
In its first month of operations giffin company made three : in its first month of operations giffin company made three purchases of merchandise in the following sequence 1 300
Calculate the appropriate free cash flow number as of ifrs : in its 2012 report volkswagen included the following cash-flow statement in millions20122011profit before
Bkfcom provides banks access to sophisticated financial : bkf.com provides banks access to sophisticated financial information and analysis via the web enabling them to
Consider each of the following announcements sepashyrately : you purchased 200 shares of h2o corporation stock at a price of 20 per share. consider each of the following
Calculate the increase in company profits if the jymp : foto company manufactures and sells a product called jymp. results from last year from the sale of jymp appear
Which one of the following statements is incorrect : which one of the following statements is incorrect regarding the margining of exchange-traded futures contracts?a. day

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the total bond interest expense

Par Four Issues $1,700,000 of 10%, 10-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,505,001.

  The bootsie holding company has sales exceeding 10 billion

the bootsie holding company has sales exceeding 10 billion and each of its three wholly-owned subsidiaries has sales

  Depreciation on the companys equipment for 2011 is computed

depreciation on the companys equipment for 2011 is computed to be 14000. b. the prepaid insurance account had a 5000

  Adjusted gross income for the current year

Determine Tonya's adjusted gross income for the current year. I know that the income is limited to the tax benefit from the prior year, but I am unsure of the tax benefit of the prior year, whether you would use all the of $10,000 or if it's limit..

  Would maholic be correct in assuming that since he is not

josiah barlow patty dumont and owen maholic are contemplating the formation of a partnership. according to the

  Investigating the purchase of atm machines

Prepare the cost of goods sold budget, you must calculate a unit cost for each month. You must also calculate cost of goods manufactured. Remember, there is no Work in Process inventory but you must calculate direct materials used.

  Determining project regular payback

Haig Aircraft is considering a project that has an up-front cost paid today at t = 0. The project will generate positive cash flows of $60,000 a year at the end of each of the next five years.

  Compute garfield budgeted purchases for march

Compute Garfield's budgeted purchases for March.

  Variance amount-variance percentage

What is the variance amount? What is the variance percentage? Is the variance favorable orunfavorable?

  The payment of liability a

The payment of liability A

  Estimate revenues earned on the basis of costs incurred

Prepare 2014 entries for Crow assuming that the warranties are not an integral part of the sale. Assume that of the sales total, $150,000 relates to sales of warranty contracts. Crow estimates the total cost of servicing the warranties will be ..

  Accounting for social clubs

What financial information are such clubs likely to collect and maintain? Assuming that the club keeps manual accounting records; would you consider such systems accounting information systems? Why or why not?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd