1. OUTLINE
QUESTIONS?
News?
Experiences?
Quiz Results
Go over quiz
Recommendations
Next homework due Tuesday night
Quiz on Wednesday
Last homework due Wednesday night
Variability in projects
CHAPTER 10 – Cash flows in projects
CHAPTER 14 - Replacement

2. Quiz Results

3. Quiz Results

4. Quiz Results

5. Recommendations
Back Side/ Dos a la Mode – I loved it
Exhibit of fashions featuring the backs of dresses
18 Rue Antoine Bourdelle (The sculturer’s studio – huge)
8 Euro with card

6. DEFINITIONS
INVESTMENTS IN WORKING CAPITAL:
MONEY NEEDED FOR NON-DEPRECIABLE ASSETS TO KEEP A PROJECT GOING
NOTE THAT CAPITAL HERE DOES NOT REFER TO CAPITALIZED EXPENSES BUT TO MONEY TIED UP FOR A SPECIFIC PERIOD OF TIME
WORKING CAPITAL RELEASE:
RECOVERING WORKING CAPITAL FROM PROJECT CASH FLOW (NON TAXABLE –IT’S YOUR OWN MONEY)
TAX IMPLICATION:
NONE

7. CASH FLOW ELEMENTS
OPERATING ACTIVITIES
REVENUES
COST OF GOODS SOLD
OPERATING EXPENSES
TAXES
INVESTING ACTIVITIES
ORIGINAL INVESTMENT
SALVAGE VALUE
WORKING CAPITAL INVESTMENT AND RECOVERY
FINANCING ACTIVITIES
BORROWING
PRINCIPAL REPAYMENT

8. OPERATING AND INVESTING ACTIVITIES
ACCRUAL METHOD:
REPORT REVENUE WHEN IT IS EARNED
REPORT EXPENSES WHEN THEY ARE INCURRED
EXAMPLES 10.1, 10.3, 10.4 – IT IS REALLY WORTHWHILE TO SPEND A LOT OF TIME ON THESE – THEY FORM THE BASIS OF THE WORK THIS SEMESTER