财务报表分析考试版

Exercise1-3P45Steps1,2,3,4a.step1,2→althoughbothcurrentassetsandcurrentliabilitiesgrow,thegrowthoftheformerisslowerthanthelatter.Step3计算比率Step4:comment:Boththecurrentandacid-testratiosshowdecliningtrends.Althoughwedonothaveinformationaboutthenatureofthecompany'sbusiness,theacid-testratioshiftfrom‘1.75’downto‘0.93andthecurrentratioshiftfrom‘2.90’downto‘1.87’indicateapotentialliquidityproblem.Still,wemustrecognizethatindustrystandardsmayshowthatthe2004ratiosweretoohigh(insteadof2006ratiosastoolow).ThedevelopmentofMixonhasbeenfarawayfromtheindustrylevelfrom2004to2006.Asawhole,itsshort-termliquiditypositionhasweakenedoverthistwo-yearperiodandwecanseerisksbecomeheavier.We’dbetterconcernaboutitsdebt.Exercise1-13 P47Bondprice=Presentvalue(PV)ofcashflows(bothinterestpaymentsandprincipalrepayment)Exercise3-7P142OnereasonthatmanagersmightwanttoresistrecordingaliabilityrelatedtoanongoinglawsuitIthinkisthattherecordedliabilitycancausedeteriorationinthefinancialpositionofthecompany.Oncetheydo,itmaymakeshareholdersloseconfidence.Asecondreasonisthattheprobabilityandtheestimatedamountsoflosscannotbeconfirmedclearlyanditmaybeunderestimatedoroverestimated.Ifamanagerbelievesthatitisinevitablethataliabilitywillberecorded,forinstance,theverdictisin,themanagermaychoosetotimetherecognitionoftheliabilityopportunistically.Ifthecompanyhasarelativelybadperiod,theliabilitycanberecordedinconjunctionwitha“bigbath.”Whileifthecompanyhasaverygoodperiod,themanagermightfindthattheliabilitycanberecordedinthatperiodwithoutcausinganunexpectedlybadearningsreport.Additionally,iftheoveralleconomyisindepression,themanagermayalsodoit.Exercise4-3P188(i)(ii)P163-164,(iii)TheLIFOmethodisbasedontheassumptionthatthelatestgoodspurchasedarethefirstsold.Asaresult,theinventoryisattheoldest(lessrecent)purchaseprices,whilecostofgoodssoldisatmorerecentpurchaseprices.举例P163-164五角星Inaninflationaryeconomy,LIFOprovidesabettermatchingofcurrentcostswithcurrentrevenueontheincomestatementbecausecostofgoodssoldisatmorerecentpurchaseprices.TheuseofLIFOcanreduceordelaytaxpayments,whichisunpopularwiththegovernments.Inshort,themanagementusesitformanipulatingprofitstocontroltheinventory.Wherethereisevidencethatthevalueofinventorytobedisposedofintheordinarycourseofbusinesswillbelessthancost,thedifferenceshouldberecognizedasalossinthecurrentperiod.Thisisdonebythegenerallyacceptedprincipleofinventoryvaluation——lowerofcostormarket.Dr.ExpenseCr.ProvisionforinventorydevaluationTheconceptofconservatism,yieldinginventoryreportedatthelowerofcostormarket,istheprimaryjustificationofthisapproach.Exercise4-6Inaperiodofrisinginventorycosts,themostrecentlypurchasedunitsaremoreexpensive.UndertheLIFOassumption,thelastunitspurchasedarethefirsttobesold,andtherefore,thecostofgoodssoldishigherunderLIFOandlowerunderFIFO.AndthennetincomeishigherunderFIFOthanunderLIFOwhenoutputpricesarestable.Also,theendinginventoryassetvalueandtotalassetsarehigherunderFIFOandlowerunderLIFO.Incontrast,inaperiodofdeclininginventorycostsandstableoutputprices,allwillreverse.Exercise6-4P290Comprehensiveincomecomputation:*a.Computation: b.Balancesheetaccountsaffected: $1,000,000 Netincome -100,000 Fairvalueofavailableforsalesecuritiesdeclines +50,000 Foreigncurrencytranslationgain -75,000 thedifferencebetweenpensionexpenseandactualfunding -12,000 Unrealizedholdinglossesonderivativeinstruments $863,000 ComprehensiveincomeExercise6-10P292Researchanddevelopmentcostsareexpensedintheyearthattheyareincurredinincomestatement.ThismeansR&Dcostsimpactcurrentincomedollarfordollar.Also,futurebenefitsareundoubtedlycreatedbymanyR&Dactivitiesandtheseexpenditureswouldbecapitalized.Butthesebenefitsareofuncertaintyandit’saviolationofthematchingprincipleinrelatingcoststorevenuesindeterminingfutureincome,WhichlimitR&DcapitalizationR&DexpendituresatFrontierBiotechdecreasedsubstantiallyinfiscal2006.ItmayresultfromshortageofR&Drefundsandignoranceofthemanagement.Althoughfiscal2006netincomeissubstantiallyhigher,thismaynotbeagoodsignalforfutureprofitability.Itmaycauseproblemsinthecompany’sfuturedevelopment.Suchas,skillobsolescence,weakeningcorecompetenceetc.Exercise7-3P326b. (1) Theissuanceoftreasurystockforemployeestockplans(ascompensation)isanexpensenotusingcashandithasnoinfluenceinCashFlowsfromOperationsDr.ExpenseCr.Capitalstock (2) Capitalizationofinterestisnotincludedinexpenseandmustbeincludedascashoutflowininvestingactivities(aspartofoutlaysforproperty.)E.g.Dr.ConstructioninprocessCr.CashItexpressescashoutflow. (3) Ifthedifferencebetweenpensionexpenseandactualfundingisanaccruedliability,theunpaidportionmustbeaddedbacktoincomeasexpensenotrequiringcash,其余的抄课本P316Exercise7-4P327Beginningbalance+inflow–outflow=Endingbalancea.Therearenononcashtransactionsandallaccountsreceivableandpayablerelatetooperation,thus:Beginningbalanceofaccountsreceivable $305,000Netsales 1,937,000Totalpotentialreceipts $2,242,000Endingbalanceofaccountsreceivable -295,000Cashcollectedfromsales $1,947,000b. accountspayablerelateonlytoitemsincludedincostofsales,therefore:E