I am practicing some financial modelling and got stuck when modelling for some cash flow items
Cash flow from investing
-purchase of available for sale securities
-proceeds from sales of AFS securities
-Other
Can anyone provide some advice on how I should forecast these three items? Thanks in advance.
| +81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 3d | |
| +32 | How the heck do you learn all of this stuff? | 5 | 1w | |
| +28 | Getting Frustrated | 10 | 3w | |
| +28 | My experience on the sell side | 20 | 2w | |
| +24 | Clues in Financial Reporting Analysis | 7 | 6h | |
| +18 | Biotech ER vs IB | 16 | 3w | |
| +17 | Am i fairly compensated? | 9 | 1d | |
| +14 | Data Science to PM | 8 | 6d | |
| +14 | Heard they don’t model at Oppenheimer | 10 | 2w | |
| +12 | ER - Remote Jobs? | 8 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
If this is a generic widget co, then I believe you don't assume any changes in afs (or other inter corporate investments). I think it only changes when you start modeling investment cos or other cos whose main business is dealing. Even then though, afs is for non-trading assets (FRS 139; sorry, as a new wso member, I couldn't link the KPMG report) so I would think this would be more appropriate for long-term, closely held assets, which doesn't seem like a good idea for anyone to attempt to forecast.
Cash Flow From Investing Activities (Originally Posted: 01/22/2018)
Going through the Cash Flow Statement, I'm wondering if Cash Flow from Investing Activities can ever be positive? This part shows how much cash is invested in long-term investments such as PP&E. So how would this ever by positive?
This can absolutely be positive. A sale of investments, for one, would result in positive cash flow to the company. Just about any cash flow statement will have both positive and negative entries under this section.
Asset disposals are an example of positive values in that section.
Dolorem porro consequatur id voluptatem. Sit saepe velit vel est minima quod. Laborum dolor veniam impedit voluptatem possimus.
Eaque numquam veniam est et nesciunt. Inventore nostrum ipsa officia non eveniet. Quo sed temporibus veniam dolorem odit. Aperiam est repellat nesciunt similique qui tempore. Aperiam vitae quis corrupti.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...