Fcfe.zip

Included in your expenses was for the wear and tear on your espresso machines (depreciation). You didn't actually write a check for $10,000 this year; it is just an accounting entry. Because that cash is still in your bank account, you add it back [1, 4]. Running Total: $110,000 3. Reinvesting in the Business: Capex

However, the bank gave you a new mini-loan of to help buy the pastry case (cash entering your pocket). FCFE.zip

Your "Net Borrowing" is negative ($5,000 borrowed minus $15,000 repaid) [1]. You subtract this net cash outflow [1]. Final Running Total: $75,000 ☕ The Moral of the Story Included in your expenses was for the wear

Here is a helpful story to explain what FCFE is and why it matters in corporate finance and investing. Running Total: $110,000 3