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Explain Statement of Before-Tax Cash Flow (BTCF)?
Cash flows refer to the net amount of cash and cash equivalents which the company earns. The cash flows indicate the ability of the company to generate returns for its shareholders or investors. It is used to measure company profitability. The cash flows also help in assessing the worth of the project and whether they will provide benefits to the company or not.
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- Using your own words, briefly (hopefully) explain: (a). What is "retained earning"? How does after-tax cash flows differ, when purchasing with retained earning vs. with loan?Differentiate between net income and net cash flow?Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have been recalculated?