《公司财务》学习的英文资料cha

Chapter2FinancialStatements,Taxes,andCashFlow0编辑pptChapterOutlineTheBalanceSheetTheIncomeStatementTaxesCashFlow1编辑pptKeyConceptsandSkillsKnowthedifferencebetweenbookvalueandmarketvalueKnowthedifferencebetweenaccountingincomeandcashflowKnowthedifferencebetweenaverageandmarginaltaxratesKnowhowtodetermineafirm’scashflowfromitsfinancialstatements2编辑pptTheBalanceSheetThebalancesheetisasnapshotofthefirm’sassetsandliabilitiesatagivenpointintimeAssetsarelistedinorderofdecreasingliquidityEaseofconversiontocashwithoutsignificantlossofvalueBalanceSheetIdentityAssets=Liabilities+Stockholders’Equity3编辑pptFigure2.14编辑pptU.S.CorporationBalanceSheet–

Table2.15编辑pptBalanceSheetAnalysisWhenanalyzingabalancesheet,theFinanceManagershouldbeawareofthreeconcerns:AccountingliquidityDebtversusequityValueversuscost6编辑pptAccountingLiquidityReferstotheeaseandquicknesswithwhichassetscanbeconvertedtocash—withoutasignificantlossinvalueCurrentassetsarethemostliquid.Somefixedassetsareintangible.Themoreliquidafirm’sassets,thelesslikelythefirmistoexperienceproblemsmeetingshort-termobligations.Liquidassetsfrequentlyhavelowerratesofreturnthanfixedassets.7编辑pptDebtversusEquityCreditorsgenerallyreceivethefirstclaimonthefirm’scashflow.Shareholder’sequityistheresidualdifferencebetweenassetsandliabilities.8编辑pptMarketvs.BookValueThebalancesheetprovidesthebookvalueoftheassets,liabilities,andequity.HistoricalCostPrinciple:UnderGenerallyAcceptedAccountingPrinciples(GAAP),auditedfinancialstatementsoffirmsintheU.S.carryassetsatcost.Marketvalueisthepriceatwhichtheassets,liabilities,orequitycanactuallybeboughtorsold,whichisacompletelydifferentconceptfromhistoricalcost.9编辑pptValueversusCostMarketvalueandbookvalueareoftenverydifferent.Why?Whichismoreimportanttothedecision-makingprocess?10编辑pptKlingonCorporationKLINGONCORPORATIONBalanceSheetsMarketValueversusBookValueBookMarketBookMarketAssetsLiabilitiesandShareholders’EquityNWC$400$600LTD$500$500NFA

700

1,000Equity6001,1001,1001,6001,1001,60011编辑pptTheIncomeStatementMeasuresfinancialperformanceoveraspecificperiodoftimeTheaccountingdefinitionofincomeis: Revenue–Expenses≡Income12编辑pptIncomeStatementTheincomestatementismorelikeavideoofthefirm’soperationsforaspecifiedperiodoftimeYougenerallyreportrevenuesfirstandthendeductanyexpensesfortheperiodMatchingprinciple–GAAPsaystorecognizerevenuewhenitisfullyearnedandmatchexpensesrequiredtogeneraterevenuetotheperiodofrecognition13编辑pptU.S.CorporationIncomeStatement-Table2.214编辑pptIncomeStatementAnalysisTherearethreethingstokeepinmindwhenanalyzinganincomestatement:GenerallyAcceptedAccountingPrinciples(GAAP)Non-CashItemsTimeandCosts15编辑pptGAAPThematchingprincipalofGAAPdictatesthatrevenuesbematchedwithexpenses.Thus,incomeisreportedwhenitisearned,eventhoughnocashflowmayhaveoccurred.16编辑pptNon-CashItemsDepreciationisthemostapparent.Nofirmeverwritesacheckfor“depreciation.”Anothernon-cashitemisdeferredtaxes,whichdoesnotrepresentacashflow.Thus,netincomeisnotcash.17编辑pptTimeandCostsIntheshort-run,certainequipment,resources,andcommitmentsofthefirmarefixed,butthefirmcanvarysuchinputsaslaborandrawmaterials.Inthelong-run,allinputsofproduction(andhencecosts)arevariable.Financialaccountantsdonotdistinguishbetweenvariablecostsandfixedcosts.Instead,accountingcostsusuallyfitintoaclassificationthatdistinguishesproductcostsfromperiodcosts.18编辑pptExample:WorktheWebPubliclytradedcompaniesmustfileregularreportswiththeSecuritiesandExchangeCommissionThesereportsareusuallyfiledelectronicallyandcanbesearchedattheSECpublicsitecalledEDGARClickonthewebsurfer,pickacompany,andseewhatyoucanfind!19编辑pptTaxesTheonethingabouttaxeswecanrelyonisthattheywillalwaysbechangingMarginalvs.averagetaxratesMarginal–thepercentagepaidonthenextdollarearnedAverage–thetaxbill/taxableincomeOthertaxes20编辑pptCorporateTaxRatesTaxableIncomeTaxRate$0-50,00015%50,001-75,0002575,001-100,00034100,001-335,00039335,001-10,000,0003410,000,001-15,000,0003515,000,001-18,333,3333818,333,334+3521编辑pptExample:Marginalvs.AverageRatesSupposeyourfirmearns$4millionintaxableincome.Whatisthefirm’staxliability?Whatistheaveragetaxrate?Whatisthemarginaltaxrate?Ifyouareconsideringaprojectthatwillincreasethefirm’staxableincomeby$1million,whattaxrateshouldyouuseinyouranalysis?22编辑pptExample:Marginalvs.AverageRates(1)TaxableIncome(2)MarginalTaxRate(3)TotalTax(3)/(1)AverageTaxRate$45,00015%$6,75015.00%70,0002512,50017.8695,0003420,55021.63250,0001,000,00017,500,00050,000,000100,000,00023编辑pptTheConceptofCashFlowCashflowisoneofthemostimportantpiecesofinformationthatafinancialmanagercanderivefromfinancialstatementsTheaccountingstatementofcashflowsdoesnotprovideuswiththesameinformationthatwearelookingathereWewilllookathowcashisgeneratedfromutilizingassetsandhowitispaidtothosewhofinancethepurchaseoftheassets24编辑pptTable2.525编辑pptFinancialCashFlowsThreeFinancialCashFlowsCashFlowFromAssetsCashFlowtoCreditorsCashFlowtoStockholdersSincethereisnomagicinfinance,itmustbethecasethatthecashflowreceivedfromthefirm’sassetsmustequalthecashflowstothefirm’screditorsandstockholders.CashFlowFromAssets(CFFA)=CashFlowtoCreditors+CashFlowtoStockholders,orCF(A)≡CF(B)+CF(S)26编辑pptCashFlowFromAssetsCashFlowFromAssets=OperatingCashFlow–NetCapitalSpending–ChangesinNWCOCF(I/S)=EBIT+depreciation–taxesNCS(B/SandI/S)=endingnetfixedassets–beginningnetfixedassets+depreciationChangesinNWC(B/S)=endingNWC–beginningNWC27编辑pptCashFlowtoInvestorsCFtoCreditors(B/SandI/S)=interestpaid–netnewborrowingCFtoStockholders(B/SandI/S)=dividendspaid–netnewequityraised28编辑pptU.S.CorporationBalanceSheet–

Table2.129编辑pptU.S.CorporationIncomeStatement-Table2.230编辑pptU.S.C.C.FinancialCashFlowOperatingCashFlow:

EBIT $694+Depreciation 65-CurrentTaxes -212OCF $547CashFlowFromtheAssetsOperatingcashflow$547Capitalspending

Additionstonetworkingcapital

TotalCashFlowtoInvestorsCreditorStockholder

Total31编辑pptU.S.C.C.FinancialCashFlowCashFlowFromtheAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital

TotalCashFlowtoInvestorsCreditorStockholder

TotalCapitalSpendingEndingnetfixedassets$1,709-Beginningnetfixedassets

-1,644+Depreciation 65CapitalSpending $13032编辑pptU.S.C.C.FinancialCashFlowCashFlowFromtheAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital-330

TotalCashFlowtoInvestorsCreditorStockholder

TotalChangeinNetWorkingCapital(NWC)EndingNWC$1,014-BeginningNWC

-684ChangeinNWC$33033编辑pptU.S.C.C.FinancialCashFlowCashFlowFromtheAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital-330

Total$87CashFlowtoInvestorsCreditorStockholder

Total34编辑pptU.S.C.C.FinancialCashFlowCashFlowFromtheAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital-330

Total$87CashFlowtoInvestorsCreditor$24Stockholder

TotalCashFlowtoCreditorsInterestPaid$70-Netnewborrowings46Cashflowtocreditors2435编辑pptU.S.C.C.FinancialCashFlowCashFlowFromtheAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital-330

Total$87CashFlowtoInvestorsCreditor$24Stockholder63

TotalCashFlowtoStockholdersDividendspaid$103-Netnewequityraised40CashtoStockholders6336编辑pptU.S.C.C.FinancialCashFlowCashFlowFromAssetsOperatingcashflow$547Capitalspending

-130Additionstonetworkingcapital-330

Total$87CashFlowtoInvestorsCreditor$24Stockholder63

Total$87Thecashflowreceivedfromthefirm’sassetsmustequalthecashflowstothefirm’screditorsandstockholders:37编辑pptExample:BalanceSheetandIncomeStatementInformationCurrentAccounts2007:CA=$1,500;CL=$1,3002008:CA=$2,000;CL=$1,700FixedAssetsandDepreciation2007:NFA=$3,000;2008:NFA=$4,000Depreciationexpense=$300LTLiabilitiesandEquity2007:LTD=$2,200;CommonStock=$500;RE=$5002008:LTD=$2,800;CommonStock=$750;RE=$750IncomeStatementInformationEBIT=$2,700;InterestExpense=$200;Taxes=$1,000;Dividends=$1,25038编辑pptExample:CashFlowsOCF=$2,700+$300–$1,000=$2,000NCS=$4,000–$3,000+$300=$1,300ChangesinNWC=($2,000–$1,700)–($1,500–$1,300)=$100CFFA=$2,000–$1,300–$100=$600CFtoCreditors=$200–($2,800–$2,200)=-$400CFtoStockholders=$1,250–($750–$500)=$1,000CFFA=-$400+$1,000=$600TheCFidentityholds.39编辑ppt2.6TheStatementofCashFlowsThereisanofficialaccountingstatementcalledthestatementofcashflows.