1, meaning and function
The cash flow analysis of project capital is after capital investment, and its analysis indicators reflect the requirements of investigating profitability from the overall perspective of investors.
The cash flow analysis index of project capital is an important basis for comparing and selecting financing schemes. The cash flow analysis index of project capital is the basis of financing decision, which is helpful for investors to make the final decision on capital contribution under their acceptable financing scheme.
2. Identification and report preparation of cash flow of project funds
(1) Determination of cash flow of project funds
Cash inflow: including
Operating income in the last year of the calculation period (including subsidy income if necessary), including the recovery of residual value of fixed assets and the recovery of working capital;
Cash outflow:
It mainly includes project capital (equity capital), operating costs, business taxes and surcharges, debt service and income tax in construction investment and working capital. When necessary, cash outflows also include investments to maintain operations.
The income tax should be equal to the income tax in financial statements such as profit and profit distribution statement, and different from the adjusted income tax in the cash flow statement of project investment.
Net cash flow:
The net cash flow includes the residual income of the project (enterprise) after tax payment and debt service (including the profits that investors should share), that is, the net income of the enterprise and the equity income of investors.
(2) Preparation of cash flow statement of project funds (see Table 9- 12 on page 2965438 of the textbook for the format)
3. Analysis indicators of cash flow of project funds
According to the requirements of China's financial analysis method, only the financial internal rate of return of project capital can be calculated, and its expression and calculation method are the same as that of project investment, but the benchmark table and net cash flow are different, and the benchmark parameters for judgment are also different.
The benchmark parameters of the financial internal rate of return of project capital should reflect the lowest expectation (minimum acceptable rate of return) of the project sponsors (representing all equity investors in the project) for investment profits.
Judge:
When the financial internal rate of return of the project capital is greater than or equal to the minimum acceptable rate of return, it shows that the profitability of the project capital exceeds or meets the requirements under the financing scheme, and the financing scheme is acceptable.