第二章-会计报表与现金流量.ppt

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1、PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT20 五月 2023第二章第二章 会计报表与现金会计报表与现金流量流量PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTSources of InformationAnnual reportsWall Street JournalInternetNYSE()Nasdaq()Text( reportsPPTPPTPPTPPT文档演模板文档演模板文档演模板文档

2、演模板 Office Office Office Office PPTPPTPPTPPT2.1 The Balance SheetAn accountants snapshot of the firms accounting value as of a particular date.The Balance Sheet Identity is:When analyzing a balance sheet,the financial manager should be aware of three concerns:accounting liquidity,debt versus equity,

3、and value versus cost.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTThe Balance Sheet of the U.S.Composite Corporation(in$millions)20X2 and 20X1Balance SheetU.S.COMPOSITE CORPORATIONLiabilities(Debt)Assets20X220X1and Stockholders Equity20X220X1Current assets:Current Liabil

4、ities:Cash and equivalents$140$107 Accounts payable$213$197 Accounts receivable294270 Notes payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets:Deferred taxes$117$104 Property,plant,and equipm

5、ent$1,423$1,274 Long-term debt471458 Less accumulated depreciation-550-460 Total long-term liabilities$588$562 Net property,plant,and equipment873814 Intangible assets and other245221Stockholders equity:Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock($1 per value)5532 Capital surpl

6、us347327 Accumulated retained earnings390347 Less treasury stock-26-20 Total equity$805$725Total assets$1,879$1,742Total liabilities and stockholders equity$1,879$1,742The assets are listed in order by the length of time it normally would take a firm with ongoing operations to convert them into cash

7、.Clearly,cash is much more liquid than property,plant and equipment.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTBalance Sheet AnalysisWhen analyzing a balance sheet,the financial manager should be aware of three concerns:1.Accounting liquidity2.Debt versus equity3.Value

8、versus costPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTAccounting Liquidity Refers to the ease and quickness with which assets can be converted to cash.Current assets are the most liquid.Some fixed assets are intangible.The more liquid a firms assets,the less likely the

9、firm is to experience problems meeting short-term obligations.Liquid assets frequently have lower rates of return than fixed assets.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTDebt versus EquityGenerally,when a firm borrows it gives the bondholders first claim on the fir

10、ms cash flow.Thus shareholders equity is the residual difference between assets and liabilities.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTValue versus CostUnder GAAP audited financial statements of firms in the U.S.carry assets at cost.Market value is a completely diff

11、erent concept.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT2.2 The Income StatementThe income statement measures performance over a specific period of time.The accounting definition of income isPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTU.S.C

12、.C.Income Statement(in$millions)20X2Income StatementU.S.COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling,general,and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net i

13、ncome Retained earnings:$43 Dividends:$43The operations section of the income statement reports the firms revenues and expenses from principal operations$2,262-1,655-327-90$19029$219-49$170-84$86PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT(in$millions)20X2Income Statemen

14、tU.S.COMPOSITE CORPORATIONTotal operating revenues$2,262Cost of goods sold-1,655Selling,general,and administrative expenses-327Depreciation-90Operating income$190Other income29Earnings before interest and taxes$219Interest expense-49Pretax income$170Taxes-84 Current:$71 Deferred:$13Net income$86 Ret

15、ained earnings:$43 Dividends:$43The non-operating section of the income statement includes all financing costs,such as interest expense.U.S.C.C.Income StatementPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT(in$millions)20X2Income StatementU.S.COMPOSITE CORPORATIONTotal ope

16、rating revenuesCost of goods soldSelling,general,and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net income Retained earnings:$43 Dividends:$43Usually a separate section reports as a separ

17、ate item the amount of taxes levied on income.$2,262-1,655-327-90$19029$219-49$170-84$86U.S.C.C.Income StatementPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT(in$millions)20 x2Income StatementU.S.COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling,genera

18、l,and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:$71 Deferred:$13Net income Retained earnings:$43 Dividends:$43Net income is the“bottom line”.$2,262-1,655-327-90$19029$219-49$170-84$86U.S.C.C.Income Stat

19、ementPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTIncome Statement AnalysisThere are three things to keep in mind when analyzing an income statement:1.GAAP2.Non Cash Items3.Time and CostsPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTGenerally Ac

20、cepted Accounting Principles1.GAAPThe matching principal of GAAP dictates that revenues be matched with expenses.Thus,income is reported when it is earned,even though no cash flow may have occurredPPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTIncome Statement Analysis2.Non

21、 Cash ItemsDepreciation is the most apparent.No firm ever writes a check for“depreciation”.Another noncash item is deferred taxes,which does not represent a cash flow.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTIncome Statement Analysis3.Time and CostsIn the short run,ce

22、rtain equipment,resources,and commitments of the firm are fixed,but the firm can vary such inputs as labor and raw materials.In the long run,all inputs of production(and hence costs)are variable.Financial accountants do not distinguish between variable costs and fixed costs.Instead,accounting costs

23、usually fit into a classification that distinguishes product costs from period costs.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT2.3 Net Working CapitalNWC is usually growing with the firm.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTThe Balan

24、ce Sheet of the U.S.C.C.(in$millions)20X2 and 20X1Balance SheetU.S.COMPOSITE CORPORATIONLiabilities(Debt)Assets20X220X1and Stockholders Equity20X220X1Current assets:Current Liabilities:Cash and equivalents$140$107 Accounts payable$213$197 Accounts receivable294270 Notes payable5053 Inventories269280

25、 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets:Deferred taxes$117$104 Property,plant,and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciation-550-460 Total long-term liabilities$588$562 Net proper

26、ty,plant,and equipment873814 Intangible assets and other245221Stockholders equity:Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock($1 par value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock-26-20 Total equity$805$725Total assets$1,879$1,742Total

27、liabilities and stockholders equity$1,879$1,742Here we see NWC grow to$275 million in 20X2 from$252 million in 20X1.This increase of$23 million is an investment of the firm.$23 million$275m=$761m-$486m$252m=$707-$455PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPT2.4 Financi

28、al Cash FlowIn finance,the most important item that can be extracted from financial statements is the actual cash flow of the firm.Since there is no magic in finance,it must be the case that the cash from received from the firms assets must equal the cash flows to the firms creditors and stockholder

29、s.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-1

30、73 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42Operatin

31、g Cash Flow:EBIT$219Depreciation$90Current Taxes($71)OCF$238PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest

32、and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurc

33、hase of equity minus new equity financing)Total$42Capital SpendingPurchase of fixed assets$198Sales of fixed assets (25)Capital Spending$173PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CO

34、RPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus

35、retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42NWC grew from$275 million in 20X2 from$252 million in 20X1.This increase of$23 million is the addition to NWC.PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office

36、 PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)A

37、dditions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPT

38、PPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions t

39、o net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42Cash Flow to CreditorsInterest$49Retirement of debt 73Debt service122Proceeds fr

40、om new debt sales (86)Total36PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation min

41、us taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity

42、 financing)Total$42Cash Flow to StockholdersDividends$43Repurchase of stock 6Cash to Stockholders 49Proceeds from new stock issue (43)Total$6PPTPPTPPTPPT文档演模板文档演模板文档演模板文档演模板 Office Office Office Office PPTPPTPPTPPTFinancial Cash Flow of the U.S.C.C.(in$millions)20X2Financial Cash FlowU.S.COMPOSITE C

43、ORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)Total$42The cash from received from the firms assets must equal the cash flows to the firms creditors and stockholders: