is note payable part of net working capital or total debt? net, capital, total

bigredhockey55

is note payable part of net working capital or total debt?

bdavi77962

what about prepaid expenses and accrued expenses?

luda002

In the FCFF/FCFE formulas you are subtracting NWC.

WC = CA - CL
NWC = Change in CA - Change in CL

NWC = (change in AR (could be plus or minus) + change in Inv (could be plus or minus) + .... )
- (change in AP (could be plus or minus) + ....)

SeanWest

It's already minus in the formula.

mengxu

Dreary Wrote:
-------------------------------------------------------
> Damil4real Wrote:
> --------------------------------------------------
> -----
> > is note payable part of net working capital or
> > total debt?
>
>
> NWC = (Delta A/R + Delta Inv) - (Delta AP + Delta
> deferred expenses)
>
> No notes payable, no cash, no s.t. debt, no
> current portion of l.t. debt.
>
> Notes payable goes in netborrowing, which you need
> for FCFE.


its the opposite

Delta A/P - Delta A/R & Inv

spreads

Damil4real Wrote:
-------------------------------------------------------
> is note payable part of net working capital or
> total debt?


NWC = (Delta A/R + Delta Inv) - (Delta AP + Delta deferred expenses)

No notes payable, no cash, no s.t. debt, no current portion of l.t. debt.

Notes payable goes in netborrowing, which you need for FCFE.

giorgio10

Debt

NWC = changes in A/P - A/R - Inv



Edited 1 time(s). Last edit at Tuesday, May 31, 2011 at 08:19PM by ZeroBonus.