FCInv / WCInv / NWCInv / Net Borrowing

Ok, i can’t remember these formulas. Could anyone please check it and answer my additional questions?

FCInv (gross) = long term assets (t) - long term assets (t-1)

FCInv (net) = long term assets (t) - long term assets (t-1) + Depreciation

WCInv = [current assets (w/o cash; t) - current assets (w/o cash; t-1)] - [current liabilites (w/o short term debt; t) - current liabilities (w/o short term debt; t-1)]

NWCInv = ok, that’s corporate finance. new product costs besides shipping/installation (e.g. increase in assets (inventory) - increase in liabilties (accounts payable)

Net Borrowing = new long and short term debt (all accounts) - long and short term debts repayments (all accounts)

Are there any other currents assets to exclude besides cash? Any current liabilties besides short term debt? Long term assets = PP&E ?



The thing is with FCinv, you could have an asset sale. If you just use gross or net ppe you will get the wrong answer because the sold asset has been removed from both. You need to look for key words that indicate a sale of assets. then look in the cf statment for the values of both purchases and sale and net the two.