中山大学会计基础lesson09en课件

1、Lesson 9Lesson 9Financial StatementsFinancial StatementsTask Team ofFUNDAMENTAL ACCOUNTINGSchool of Business, Sun Yat-sen University1中山大学会计基础lesson09en2OutlinestA General View of Financial statementstIncome statementtBalance sheettStatement of owners equityt A Simple Illustration 3Opening Story4Gene

2、ral View of Financial statements: GAAPtStatement of Financial Position (Balance Sheet).tIncome Statement.tStatement of Cash Flows.5General View of Financial statements: Stock vs. FlowtStock/ resources and obligations at a point in time:Balance sheet.tFlow/activity over a period of time:Income statem

3、ent.Statement of cash flows.6Financial Statement Objectivest Useful for investment decisions. (All financial statements)t Comprehensible. (All financial statements)t About economic resources and claims on resources (Balance Sheet).t About financial performance during a period (Income Statement).t Ab

4、out cash flows (Statement of Cash Flows).7General View of Financial statements: a Comparison8General View of Financial statements: Brief Comments9Information Disclosed on Financial Statements10Information Disclosed on Financial Statements (cont)11Income StatementtAlso called: Profit & Loss state

5、ment = P&L statement = statement of earnings = statement of operationstTechnically subordinate to BS.Shows detail of changes to RE.tMany investors consider IS more important than BS.tVariations in format.12Parts of Income Statementt Heading:Name of entity.Name of statementTime period covered.t R

6、evenues.t Cost of Sales.t Gross Margin.t Expenses.1. Net Income13Revenues inIncome Statementt Several separate revenue items or net.t Net sales = gross sales - sales returns and allowances - sales or cash discounts.Trade discounts not shown.Excludes sales or excise taxes collected for government.Oth

7、er revenues (from activities not associated with sales of entitys goods/services) may be included in net sales or shown separately. 14Expenses onIncome Statementt Cost of Sales (or cost of goods sold). Associated with a decrease in the asset inventory.t Gross margin = gross profit = Sales - COGS.May

8、 or may not be shown.t Separate disclosure of:Research & development expenses.Interest expense.15Income Statement FormattOperating income may be shown before Other income and expense.tNet income = Income before taxes Income tax expense.tIncome before taxes = Operating income adjusted for other r

9、evenues and expenses.16Revenues:Consulting revenue3,800$ Rental revenue300 Total revenues4,100$ Operating Expenses:Rent expense1,000$ Salaries expense700 Total operating expenses1,700 Net income2,400$ Finlay InteriorsIncome StatementFor Month Ended January 31, 2001Example of Income Statement17Exampl

10、e of Income Statement (cont)Revenues:Consulting revenue3,800$ Rental revenue300 Total revenues4,100$ Operating Expenses:Rent expense1,000$ Salaries expense700 Total operating expenses1,700 Net income2,400$ Finlay InteriorsIncome StatementFor Month Ended January 31, 200118Example of Income Statement

11、(cont)Revenues:Consulting revenue3,800$ Rental revenue300 Total revenues4,100$ Operating Expenses:Rent expense1,000$ Salaries expense700 Total operating expenses1,700 Net income2,400$ Finlay InteriorsIncome StatementFor Month Ended January 31, 200119Balance SheettPoint in time or status report.tMore

12、 formally, Statement of Financial Position.tContains (and shows equality of amounts of):Assets.Liabilities and Owners equity.20Cash8,400$ Accounts payable200$ Supplies3,600 Notes payable6,000 Equipment26,000 Total liabilities6,200$ Wang Fang, capital31,800 Total assets38,000$ Total liabilities andow

13、ners equity38,000$ AssetsOwners EquityLiabilitiesBeauty Photo StoreBalance SheetJanuary 31,2005Beauty Photo Store: Balance Sheet21AssetstAssets are properties or economic resources owned by a businesstThey are expected to provide future benefits to the business.22Liabilities tLiabilities are obligat

14、ions of the business.tThey are claims against the assets of the business.23Equity tEquity is the owners claim on the assets of the business.tIt is the residual interest in he assets of the business after deducting liabilities24An Illustration of Balance Sheet25An Illustration of Balance Sheet (cont)

15、26An Illustration of Balance Sheet (cont)27An Illustration of Balance Sheet (cont)28Flow StatementstExplains changes between the dates of the two balance sheet snapshots.t2 types of flow statements:Income statement (and related statement of retained earnings).Reconciles change in RE.Statement of Cas

16、h Flows.Reconciles changes in cash.29Statement of Cash FlowstAccounts provide information summarized in balance sheet and income statement.tThird statement required by GAAP.tDoes not affect the way transactions are recorded.tDerived from data reported in other financial statements.30The Statement of

17、 Cash Flows31Statement of cash flowstProvides info about cash flows associated with the periods operations and investing and financing activities.tNumbers on cash flow statement are objective: cash is cash.tEliminates judgments and estimates involved with accrual accounting and the income statement

18、and balance sheet.32Statement of Cash Flows:2 Categories of ActivitiestSources = activities that generate cash.tUses = activities that involve spending cash33SourcestOperations.tNew borrowings.tNew stock issues.tSale of property, plant, and equipment.tSale of other non-current assets.34UsestCash div

19、idends.tRepayment of borrowings.tRepurchase of stock.tPurchase of property, plant, and equipment.tPurchase of non-current assets.35Illustration: Statement of Cash Flows36Illustration (cont): Statement of Cash Flows37Illustration (cont):Statement of Cash Flows38Illustration (cont): Statement of Cash

20、Flows39Statement of owners equityt The statement of owners equity reports on changes in equity over the reporting period.t Start with beginning equity t Adjust for events :Increase:Investments by ownerNet income decrease:Owner withdrawalsNet loss40Two Categories ofTwo Categories ofShareholders Equit

21、yShareholders EquitytPaid-in or contributed capital.tRetained earnings.41Balance Sheet and Changes in Equity4243wang Fang, capital, January 1-$ Add:Investment by owner30,000$ Net income2,400 32,400 Total32,400 Less: Withdrawal by owner600 Wang Fang, capital, January 3131,800$ Beauty Photo StoreState

22、ment of Owners EquityFor month ended January 31,2005Beauty Photo Store:Statement of Owners Equity44Summary tThere are two major types of financial statements-stock reports and flow reportstFinancial statement can serve as an important device to disclose information to investors in order for them to make better decisionstFour major financial statements are compared, explained and illustr