Worked-example setupScope and assumptions
- Harbor and all amounts are fictional and supplied for instruction.
- The classification, population, deal, net-presentation, and award conclusions are supplied.
- The simplified model aggregates specialized debt and award cash only after the learner prepares their component schedules.
- Period
- Year ended December 31, Year 5
- Units
- US dollars
- Rounding
- Retain full precision; display whole dollars with commas
Closing-file reconstruction
Harbor transfers $450,000 cash and $150,000 stock for a business holding $50,000 cash. The investing outflow is $400,000. Stock consideration is noncash. Assumed liabilities remain in the acquisition bridge but are not cash paid.
The disposal yields $300,000 cash while $20,000 cash leaves with the operation, so net investing inflow is $280,000. Neither the recorded gain nor the sold net assets determines that amount. Combined with $200,000 capital spending, net investing cash is $(320,000).
Gross financing and noncash rails
Harbor borrows $500,000 and repays $200,000. It also pays $80,000 of supplied dividend and award-withholding cash. The financing subtotal is $220,000. A net debt balance change would conceal refinancing volume and noncash movements.
Equipment acquired with a $90,000 note and a $60,000 lease commencement join the $150,000 stock consideration in a $300,000 noncash schedule. They do not become equal investing and financing cash flows. Later principal, lease, and award cash will be new events with their own evidence and classifications.
The $100,000 operating subtotal offsets $(320,000) investing and $220,000 financing, leaving the $1,000,000 population unchanged. That endpoint does not prove the supplied deal or classification judgments; it proves only that the accepted inputs articulate.
Quantitative companions
Choose from 2 ways to work with this calculation.
Verified calculation · advanced cash flow analysis
The curriculum loader recomputed this example before it entered the site build. Expand any structured input to inspect the stated facts.
- business combinations
- 1 field
Inspect data
{
"harbor_acquisition": {
"cash_acquired": 50000,
"cash_consideration": 450000
}
}- business disposals
- 1 field
Inspect data
{
"coastal_disposal": {
"cash_divested": 20000,
"cash_proceeds": 300000
}
}- direct operating payments
- 1 field
Inspect data
{
"supplier_employee_interest_and_tax_payments": 400000
}- direct operating receipts
- 1 field
Inspect data
{
"customer_and_other_receipts": 500000
}- ending cash
- 840,000
- ending cash equivalents
- 110,000
- ending restricted cash
- 50,000
- financing cash flows
- 3 fields
Inspect data
{
"dividends_and_award_withholding": -80000,
"gross_borrowing_proceeds": 500000,
"gross_principal_repayments": -200000
}- fx effect
- 0
- indirect adjustments
- 1 field
Inspect data
{
"noncash_and_timing_adjustments": 30000
}- investing cash flows
- 1 field
Inspect data
{
"capital_expenditures": -200000
}- net income
- 70,000
- noncash activities
- 3 fields
Inspect data
{
"equipment_acquired_by_note": 90000,
"lease_commencement": 60000,
"stock_consideration": 150000
}- opening cash
- 850,000
- opening cash equivalents
- 100,000
- opening restricted cash
- 50,000
- reported direct operating cash flow
- 100,000
- reported ending cash population
- 1,000,000
- reported financing cash flow
- 220,000
- reported indirect operating cash flow
- 100,000
- reported investing cash flow
- -320,000
- reported net change before fx
- 0
Recomputed result
| Measure | Value |
|---|---|
| acquisition net cash flow | 400,000 |
| actual ending cash population | 1,000,000 |
| cash population difference | 0 |
| direct indirect difference | 0 |
| direct operating cash flow | 100,000 |
| disposal net cash flow | 280,000 |
| expected ending cash population | 1,000,000 |
| financing cash flow | 220,000 |
| fx effect | 0 |
| indirect operating cash flow | 100,000 |
| internal transfer sum | 0 |
| investing cash flow | -320,000 |
| net change before fx | 0 |
| noncash activity total | 300,000 |
| opening cash population | 1,000,000 |