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Home Questions Non-Cash Charges calculation in spreadsheet

Non-Cash Charges calculation in spreadsheet
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2:15 pm
July 22, 2011


Roger

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posts 13
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Hi Jae,

 

When calculating the "Owner Earnings", I would like to know what default Non-Cash charges are you using in your calculation?

Non-Cash Charges are real charges which are actually taken off the working capital, for example Depreciation and Amortization are two charges which actually count as non-cash charges.

 

But when I refer to the example in Ponzio's book (I refer to the example of Patterson Dental), he uses these non-cash charges in his calculation:

(12,246) Increase in receivables

(3,817) Increase in inventory

7,739 Increase in accounts payable

2,633 Increase (decrease) in accrued liabilities

(2,742) Increase in long-term receivables

8,838 Other charges from operating activities, et

————————–> TOTAL non-cash charges: US$ 405.- (million).

 

Since all these mentioned charges are not always found the same on every cash flow/income statement, I'd like to know whether you're using some kind of a standard list of non-cash charges when calculating the owner earnings.

Thanks in advance.

 

Kind regards,

Roger

 
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