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360-degree analysis of Cash Flow Statement, its importance, calculation, uses and analysis of different scenarios. Forecasting of Cash Budget.
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Cash Flow can be calculated by two methods, Direct method and Indirect Method. However, the result will be same.
Further, there is difference between Cash Flow and Free Cash flow. Cash Flow is the net cash and cash equivalent that comes in and goes out of a company. Whereas, Free Cash Flow is the amount of cash generated through business operations after capital expenses and operating expenses are paid off.
Free cash flows are measured by two ways; Free Cash Flow to Firm and Free Cash Flow to Equity. Free cash flow to firm (FCFF) can be described as the cash that is available with the firm owners to pay off their investors, i.e. for both equity holders and lenders. Whereas, Free Cash flow to equity (FCFE) is the amount of free cash that can be distributed to equity shareholders only in the form of dividends or stock buy backs after all expenses, reinvestments, and debt repayments have been paid off.
Cash Budget and Cash Flow are two different concepts. Cash flows represents the actual flows during the past period. Cash Budget is a forecasting tool that tracks all cash receipts and cash payments of an enterprise during a period and helps in assessing working capital requirement
1. The learners will gain an understanding about Cash Flow Statement, its importance in analysing the liquidity position of a business enterprise and to assess overall financial health.
2. The learners will understand the various heads of Cash Flow like, cash flow from operating, investing and financing activities and the relevance of each head.
3. The learners will understand the importance of availability of free cash with a business enterprise and its usefulness in making strategy for future planning apart from how to construct the cash flow statement.
4. The learners will get to know the techniques being used to assess and measure short term liquidity and long term liquidity, difference between financial statements based on accrual and cash based statements in financial space. ****
5. The learners will understand forecasting of a cash budget.
The course is structured in six modules, with each module catering to a separate domain. At the end of each module there will be 10 MCQ questions to test the progress of the learner. Scoring in MCQs at the end of each module will not influence the completion of the course. At the end of the 6th module, a ‘Final Test’ containing 30 MCQs will have to be taken by the learner.
The learner will be assumed to have completed the course if he/she scores at least 70% in the Final Evaluation alongwith 70% score in periodical assessment after completion of each Module.
Introduction:
* About the course
* Brief Objectives
Relevance ***
Module I : Modelling of Cash Flow
**Module II : Modelling of Direct & Indirect methods of Cash Flow **
Module III : Forecasting of Cash Flow
Module IV : Modelling and Forecasting of Free Cash Flow
Module V : Modelling and Forecasting of Cash Budget
Module VI :Final Evaluation 30 MCQs
