Q: Could you just quickly go over again where the $754M surplus cash flow comes from?
A: In this session slide 8 we review Larry Crevin’s “Good Times Personal Cash Flow” scenario which was completed in session #5, slide 22 and provided in the session #5 solution set. Here is a summary:
$1,112,332 | Cash Revenue based upon our Personal Income Tax return cash flow analysis. |
(145,464) | Less: Cash Living Expenses that he provided to the institution. |
(178,348) | Less: Cash Taxes Paid derived from his Personal income tax return information. |
( 34,266) | Less: Personal Debt Service per the review of his financial statement and credit report. |
$754,254 | = Cash Available to Support Company Debt Service |
Course overview: Non-Financial Red Flags and Performance Implications