Business of Radiology 101

Cash Flow: Financing Activities

Cash Flow from Financing Activities can be divided into two general categories: cash inflow from investors and cash outflow to shareholders. Examples of cash inflow from financing activities may include funds received from sales of company stock or bonds. Examples of cash outflow from financing activities include dividend payments to shareholders and repurchases of company shares. In radiology, this Cash Flow category usually encompasses loans the business uses to finance its operations.

*  all values represent 1,000s of dollars.
			Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
Net Revenues	Δ
Cost of Sales
Operating Expenses	Δ
Operating Profit (EBIDAT)
Interest Expense
Earnings before Deprec, Amort & Tax (EBDAT)
Depreciation Expense
Tax
Net Income
Cash Flow (cumulative)
Cash Flow (annual)
Net Present Value of Cash Flow	discount rate
Return on Investment
Acquisition Cost			Price	Renovation	IT / PACS	Sales Tax	TOTAL
		$
Scanner Useful Life (yr)
Scanner Residual Value (% of new price)
Financing (Loan) Details			Money Down	Principal	Rate	Term (yr)
	Down Payment
Interest Payment (annual, not monthly)				Year 1	Year 2	Year 3	Year 4	Year 5