ABSTRACT
The 1946–90 cash flow and accruals averages reported in (unabridged) Tables 3.2 and 3.7 respectively can be compared, as a first step, in highlighting the “fiscal drag” and financial policy implications of the post-war cash flow-accruals accounting relationships of the Nonfinancial Corporate Business sector (see Table 4.1 infra). Nonfinancial Corporate Business: Average accruals and average cash flows 1946–1990 https://www.niso.org/standards/z39-96/ns/oasis-exchange/table">
accruals
cash flows
funds from operations (before depreciation interest & profits tax) 1 depreciation
470.2
operating cash flow 1
525.9
18.4
liquidity change
133.9
280.7
capital expenditure 1
pre-tax entity profit tax charged (27% “optical”)
392.0
171.1
pre-tax entity cash flow
104.5
102.3
tax paid (60% effective”)
post-tax entity profit estimated interest (20%) 2
287.5
68.8
post-tax entity cash flow
78.8
78.8
estimated interest 115%) 3
post-tax profit after interest domestic net dividends (36%)
208.7
(10.0)
74.9
83.4
shareholder cash flow
retained earnings
133.8
(93.4)
debt financing (112%) 4
NotesAdjusted in respect of the official discrepancy as described in Notes i, ii and iii of Table 3.7, page 134.
20 percent of pre-tax entity profit
115 percent of post-tax entity cash flow
112 percent of shareholder cash flow
