I always thought accruals ratio was NOA end - NOA beg / Avg NOA It turns out the same answer (18%) but just curious what the difference between that anc the cash flow method is (if any) Thanks!
Same answer, different path. Which makes no sense since you have to know NOA in both formulas any-way.
you got it… I actually chose the accruals ratio method and it worked out to the right answer… not .18 but the right answer
I don’t have the thing in front of me. but I recall, I think they gave the avg NOA and the cash flow statement. fast and easy!
no… gave 07 and 08 NOA… Difference is equal to NI - (CF0+CFI)
CF Accrual Ratio: NI - (CFO + CFI) / Average NOA
you got it bp
CFAdreams Wrote: ------------------------------------------------------- > bp, > > you mean CF accrual = NI - (CFO + CFI)/average noa > , right? Yup! Thanks for the correction
( NI - (CFO + CFI) ) / average noa clarifying the bracket structure.
Order of operations is important