We start by taking a few numbers that have been calculated already. Net income comes from the income statements. I've got the choice of net income or recurring net income. I'm always gonna go with just the bulk standard net income. That net income is the one that would really be happening in the company. That's the one that would really be leading to some real dividends. Those dividends are actual cash flows. We can't go with the recurring net income.

The recurring net income is us asking what if a few things didn't happen, so we can't use that one.

Next is depreciation and amortization. I know that they're already negatives in the income statement and I need to change them to a positive. So I'll start with that minus sign, scroll up to my income statement.

There's the 22.5. I can see the amortization is directly below so I'll just copy that down. Fantastic. Now for change in operating working capital I need to go away and do a separate calculation.

I can go up to the calc section where we've got the various items that go into OWC, things like receivables, inventories, et cetera. I need these figures for the previous year, the historical year, and then I need them for the first projected year. Let's go and get some of these from the balance sheets. I'm gonna start with receivables, and I might notice that immediately below that I have inventories and prepaids. If I go down to the balance sheets I've got receivables here, and I know immediately below that are inventories and prepaids, so I can just copy that down. So I select the cells to copy it down. I press Control + D, the letter D. Then to copy it to the right, I can select to the right and press Control + R, and I've got those figures filled in for this year and last year.

I need to do the same thing for those liabilities. So payables, scroll down to the balance sheet, find the number that's been calculated. Again, I notice here that underneath payables I've got accrued expenses and income taxes payable so I can just copy that down and then copy it to the right.

Now to calculate my OWC I need to sum up the operating current assets and then subtract the sum of the operating current liabilities. So my operating working capital comes to 73.2 and if I copy that to the right, I get 74.3.

Let's reel those formulas, make sure you guys can see all of those.

And there they are. Now my operating working capital has gone up from 73.2 to 74.3. This means that I've got more cash tied up in my operations. I had 73.2 tied up in my operations last year. This year I've got 74.3 tied up in my operations. So what's happened in my bank account? I must have had an outflow of cash of 1.1, the difference between those two years.

That cash has gone out from my bank account into my operations. So I'll go back down to my cash flow statements.

I'll press equals, go up to the operating working capital and I'll take last year minus this year.

And there's the 1.1, and it's an outflow from my bank balance.

Changing other long-term assets I'm gonna link to the balance sheets, very similar. Those other long-term assets have gone up. That means I have bought them, which means my cash in the bank has gone down by 1.5. Other non-current liabilities. I take this year minus last year. If my liabilities have gone up that means I owe more to people. If I owe more to them I must have more cash in my bank accounts. My bank balance has gone up by 2.8. Lastly, then my cash flow from operations. If I sum it all up, I find that I've got 83.4.