公司理财第七版Chap03

1、McGraw-Hill/IrwinCopyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.Accounting and FinanceUnderstanding financial accounting is essential to understanding corporate finance.Key Components of the Financials:The Balance SheetThe Income StatementThe Statement of Cash FlowsThe Balance

2、 SheetThe Balance Sheet is a financial statement that shows the firms assets and liabilities at a particular time.Why is it useful?Shareholders Equity = Total Assets Total LiabilitiesThe Balance SheetCurrent Assets Cash & Securities Receivables InventoriesFixed Assets Tangible Assets Intangible

3、Assets+_Total AssetsCurrent Liabilities Payables Short-term Debt+Long-term Liabilities+Shareholders Equity_Total Liabilities & Shareholders Equity=AssetsAssets represent the uses of a firms fundsi.e. Assets show what the firm “owns”Liquid Assets can be converted easily into cash Current vs. Fixe

4、d AssetsCurrent Assets: ExamplesWhich of the following assets is typically considered most liquid? Least liquid? Marketable securities Accounts receivable InventoriesWhich of the following is a current asset? Property that a firm owns A firms production equipment Unsold inventoriesFixed Assetsw Tang

5、ible Assetsw Intangible Assetsw GoodwillFixed Assets: Examplew Which of the following represent tangible assets? Intangible assets? Property Production Facilities Patents Production Equipment Trademarks CopyrightsLiabilitiesLiabilities represent the sources of a firms funding.(i.e. Liabilities repre

6、sent what a firm “owes.”)w Current vs. Long-Term LiabilitiesCurrent Assets Current Liabilities = Net Working CapitalLiabilities: Examplew Which of the following is a current liability? Bond debt that matures in 3 years A bank loan that is due in 24 months An obligation to pay a supplier within 6 mon

7、thsNet Working Capital: ExampleIn the balance sheet below, what was the value of net working capital in 2008? 2009?Book Values vs. Market Valuesw GAAP (Generally Accepted Accounting Principles)w Book Value Value of assets or liabilities according to the balance sheet. Values recorded at their histor

8、ical cost adjusted for depreciationw Market Value The value of assets or liabilities were they to be resold in a market Common-Size Balance SheetAll balance sheet items are expressed as a percentage of total assets. Why is this useful?Common-Size Balance Sheet: ExampleNote the changes from 2008 to 2

9、009.The Income StatementIncome Statement: a financial statement that shows the revenues, expenses, and net income of a firm over a period of time.Why is this useful?Common-size Income StatementAll items on a common-size income statement are expressed as a percentage of revenues.Why is this useful?In

10、come Statement: ExampleIn the income statement below, what was the value of Home Depots EBIT in 2009?Common Size Income Statement(right column)Profits vs. Cash FlowDifferences between profits & cash flow:w Depreciationw Cash vs. accrual accounting(1000)0750750Cash Flows: ExampleConsider a firm t

11、hat spends $1,000 to produce goods in period 1. In period 2, it sells half of these goods for $750 and collects payment one period later. The firm sells the other half in period 3 for another $750, and collects payment on these sales in period 4. What are the cash flows in each of the 4 periods for

12、the firm?Period:1234Sales ($)07507500-Accounts Receivable07500(750)- Cost of Goods Sold05005000- Changes in Inventories1000(500)(500)0= Net Cash FlowThe Statement of Cash FlowsThe Statement of Cash Flows shows the firms cash receipts and cash payments over time.Why is it useful?Free Cash Flow is cas

13、h available for distribution to investors after the firm pays for new investments or additions to working capital.The Statement of Cash FlowsCash flow from operations+Cash flow from investments+Cash flow from financing_Change in cash balanceStructure:Cash Flow: ExampleNet income for your firm was $1

14、0,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000.What was the total cash flow from operations for the period?Net income:10,000Depreciation: 2,500Accounts Receivable: (1,250)Accounts Payabl

15、e: 800Inventories: (2,000)Cash flow from operations:10,050Accounting PracticeMost managers say that accounting earnings is the single most important number reported to investors.What implications does this have for the investor?Accounting PracticeGrey areas for financial managers:Revenue recognition

16、Cookie-jar reservesAccounting PracticeAdditional grey areas for financial managers:Off-balance sheet assets and liabilitiesMark-to-market accounting Corporate TaxesIn the United States, corporations pay tax on their income.US Corporate Tax Rates, 2011Corporate Taxes: ExampleWhat is the marginal tax

17、rate for a corporation with $60,000 taxable income and an average tax rate of 16.67% if the next-lowest marginal tax rate of 15% covers taxable incomes up to $50,000?($60,000) * (16.67%) = $10,000 total taxes paidIncomeRateTaxes Paid$0 - $50,00015%$7,500$50,001 - $60,000?$2,500Total:$10,000($10,000)

18、 * (marginal tax rate) = $2,500Marginal Tax Rate = 25%Personal TaxUS Personal Tax Rates, 2011Personal Tax: ExampleWhat is the average tax rate for an individual with a net income of $50,000 and a total tax liability of $10,704.50?Taxable Income = $50,000 + $10,704.50Tax Liability$10,704.50Average Tax Rate = 17.63%Taxab