Corporate finance formula_ P1_ Accounting statement and cash flow

1. Net profit = dividend + Increase in retained earnings
2. Capital expenditure = Net amount of fixed assets at the end of the period - Net amount of fixed assets at the beginning of the period + depreciation
3. Cash flows from assets = Cash flows to creditors + Cash flows to shareholders
4. Cash flows from assets = Operating cash flow (OCF)- Change in net working capital - Net capital expenditure
5. Operating cash flow = Profit before interest and tax + depreciation - Income tax
6. Cash flows to creditors = interest - Net liabilities in the new growth period
7. Cash flows to shareholders = dividend - Net new equity
8. Net capital expenditure = The added value of the net value of fixed assets + depreciation
9. The market value of shareholders' equity =Max[( The total assets of - liabilities ),0]