The net cash flow of fixed asset investment is a very important knowledge point in the intermediate accountant, tax agent and note examination, and it is easy to make mistakes.
1. The formula for calculating the net operating cash flow of investment projects:
Net operating cash flow is the balance of cash inflows minus cash outflows during the operating period of the project. It is calculated as follows:
Net cash flow from operations = cash inflow in each year of the operating period - cash outflow in each year of the operating period.
Sales Revenue - Cash Costs - Income Tax.
Sales Revenue - Cash Costs - (Sales Revenue - Cash Costs - Depreciation) * Income Tax Rate.
Sales Revenue * (1 - Income Tax Rate) - Cash Cost * (1 - Income Tax Rate) + Depreciation * Income Tax Rate.
Net profit + depreciation.
Note: 1) Cash Costs = Operating Costs Depreciation & Amortization = Total Costs Interest Depreciation & Amortization. Therefore, the net profit here is not the net profit in the income statement, but the "EBIT", which is "EBIT* (1 - income tax rate)".
2) Net cash flows are usually calculated on an annual basis and are the metrics required in the formulas for calculating the net present value and present value indices in decision-making.
2. When it comes to projected net residual value and residual value income, how should the net cash flow in the last year be calculated?
Method 1: Cash flow in the last year = sales revenue - cash cost - [sales revenue - cash cost - depreciation and other non-cash costs - (estimated net residual value - amount received from residual value realization)] * 25% + amount received from residual value realization + working capital.
Method 2: Cash flow in the last year = [sales revenue - cash cost - non-cash cost such as depreciation - (estimated net residual value - amount received from realization of residual value)] * 1-25%) + non-cash cost such as depreciation + estimated net residual value + working capital.
Method 3: Cash flow in the last year = (sales revenue + amount received from salvage realization - cash cost) * (1-25%) + depreciation + estimated net residual value) * 25% + working capital.
Note: (1) The estimated net residual value is a non-cash cost like depreciation.
2) Estimated net residual value - amount received from realization of residual value = actual recognized non-operating income.
Example: The original investment in fixed assets of a project is 22.4 million yuan, and the depreciation is calculated for 5 years using the average life method, and the estimated net residual value is 2.4 million yuanIt is assumed that the actual realisation value after 5 years of use is $1,000,000. It is estimated that the company's annual sales revenue will be 10 million yuan after the project is put into operation, and the cash cost will be 40 of the sales revenue of the year. Assuming that the project needs to invest 3 million yuan in working capital, the income tax rate is 25. The net cash flow of the investment project at the end of the operating period was ( ) 10,000 yuan.
a.985 b.925 c.1000 d.890
Answer] A [Analysis] Annual depreciation (2240 240) 5 400 (10,000 yuan), method 1: net cash flow in the last year 1000 (1 40) 1000 (1 40) 400 (240 100) 25 Realized income 100 Working capital 300 985 (10,000 yuan).
Method 2: Net cash flow in the last year Net profit 1000 (1 40) 400 (240-100) 1 25) Non-cash cost (400 240) + working capital 300 985 (10,000 yuan).
Method 3: Net cash flow in the last year Income (1000 100) Cash cost 1000 40 1 25) 400 240) 25 + working capital 300 985 (10,000 yuan).