公司理财Ross-Chap002课件

FinancialStatementsandCashFlowChapter2Copyright©2010bytheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/Irwin公司理财Ross-Chap002FinancialStatementsandCash1KeyConceptsandSkillsUnderstandtheinformationprovidedbyfinancialstatementsDifferentiatebetweenbookandmarketvaluesKnowthedifferencebetweenaverageandmarginaltaxratesKnowthedifferencebetweenaccountingincomeandcashflowCalculateafirm’scashflow公司理财Ross-Chap002KeyConceptsandSkillsUnderst2ChapterOutline2.1TheBalanceSheet2.2TheIncomeStatement2.3Taxes2.4NetWorkingCapital2.5FinancialCashFlow2.6TheAccountingStatementofCashFlows2.7CashFlowManagement公司理财Ross-Chap002ChapterOutline2.1TheBalance3SourcesofInformationAnnualreportsWallStreetJournalInternetNYSE()NASDAQ()Textbook()SECEDGAR10K&10Qreports公司理财Ross-Chap002SourcesofInformationAnnualr42.1TheBalanceSheetAnaccountant’ssnapshotofthefirm’saccountingvalueataspecificpointintimeTheBalanceSheetIdentityis:Assets≡Liabilities+Stockholder’sEquity公司理财Ross-Chap0022.1TheBalanceSheetAnaccoun5U.S.CompositeCorporationBalanceSheet2010200920102009Currentassets:CurrentLiabilities:Cashandequivalents$140$107Accountspayable$213$197Accountsreceivable294270Notespayable5053Inventories269280Accruedexpenses223205Other5850Totalcurrentliabilities$486$455Totalcurrentassets$761$707Long-termliabilities:Fixedassets:Deferredtaxes$117$104Property,plant,andequipment$1,423$1,274Long-termdebt471458Lessaccumulateddepreciation(550)(460)Totallong-termliabilities$588$562Netproperty,plant,andequipment873814Intangibleassetsandother245221Stockholder'sequity:Totalfixedassets$1,118$1,035Preferredstock$39$39Commonstock($1parvalue)5532Capitalsurplus347327Accumulatedretainedearnings390347Lesstreasurystock(26)(20)Totalequity$805$725Totalassets$1,879$1,742Totalliabilitiesandstockholder'sequity$1,879$1,742Theassetsarelistedinorderbythelengthoftimeitwouldnormallytakeafirmwithongoingoperationstoconvertthemintocash.Clearly,cashismuchmoreliquidthanproperty,plant,andequipment.公司理财Ross-Chap002U.S.CompositeCorporationBal6BalanceSheetAnalysisWhenanalyzingabalancesheet,theFinanceManagershouldbeawareofthreeconcerns:LiquidityDebtversusequityValueversuscost公司理财Ross-Chap002BalanceSheetAnalysisWhenana7LiquidityReferstotheeaseandquicknesswithwhichassetscanbeconvertedtocash—withoutasignificantlossinvalueCurrentassetsarethemostliquid.Somefixedassetsareintangible.Themoreliquidafirm’sassets,thelesslikelythefirmistoexperienceproblemsmeetingshort-termobligations.Liquidassetsfrequentlyhavelowerratesofreturnthanfixedassets.公司理财Ross-Chap002LiquidityReferstotheeasea8DebtversusEquityCreditorsgenerallyreceivethefirstclaimonthefirm’scashflow.Shareholder’sequityistheresidualdifferencebetweenassetsandliabilities.公司理财Ross-Chap002DebtversusEquityCreditorsge9ValueversusCostUnderGenerallyAcceptedAccountingPrinciples(GAAP),auditedfinancialstatementsoffirmsintheU.S.carryassetsatcost.Marketvalueisthepriceatwhichtheassets,liabilities,andequitycouldactuallybeboughtorsold,whichisacompletelydifferentconceptfromhistoricalcost.公司理财Ross-Chap002ValueversusCostUnderGeneral102.2TheIncomeStatementMeasuresfinancialperformanceoveraspecificperiodoftimeTheaccountingdefinitionofincomeis: Revenue–Expenses≡Income公司理财Ross-Chap0022.2TheIncomeStatementMeasur11U.S.C.C.IncomeStatementTotaloperatingrevenuesCostofgoodssoldSelling,general,andadministrativeexpensesDepreciationOperatingincomeOtherincomeEarningsbeforeinterestandtaxesInterestexpensePretaxincomeTaxesCurrent:$71Deferred:$13NetincomeAdditiontoretainedearnings$43Dividends:$43Theoperationssectionoftheincomestatementreportsthefirm’srevenuesandexpensesfromprincipaloperations.$2,2621,65532790$19029$21949$17084$86公司理财Ross-Chap002U.S.C.C.IncomeStatementTota12Totaloperatingrevenues$2,262Costofgoodssold1,655Selling,general,andadministrativeexpenses327Depreciation90Operatingincome$190Otherincome29Earningsbeforeinterestandtaxes$219Interestexpense49Pretaxincome$170Taxes84Current:$71Deferred:$13Netincome$86Additiontoretainedearnings:$43Dividends:$43Thenon-operatingsectionoftheincomestatementincludesallfinancingcosts,suchasinterestexpense.U.S.C.C.IncomeStatement公司理财Ross-Chap002Totaloperatingrevenues$2,26213TotaloperatingrevenuesCostofgoodssoldSelling,general,andadministrativeexpensesDepreciationOperatingincomeOtherincomeEarningsbeforeinterestandtaxesInterestexpensePretaxincomeTaxesCurrent:$71Deferred:$13NetincomeAdditiontoretainedearnings:$43Dividends:$43Usuallyaseparatesectionreportstheamountoftaxesleviedonincome.$2,2621,65532790$19029$21949$17084$86U.S.C.C.IncomeStatement公司理财Ross-Chap002TotaloperatingrevenuesCosto14TotaloperatingrevenuesCostofgoodssoldSelling,general,andadministrativeexpensesDepreciationOperatingincomeOtherincomeEarningsbeforeinterestandtaxesInterestexpensePretaxincomeTaxesCurrent:$71Deferred:$13NetincomeRetainedearnings:$43Dividends:$43Netincomeisthe“bottomline.”$2,2621,65532790$19029$21949$17084$86U.S.C.C.IncomeStatement公司理财Ross-Chap002TotaloperatingrevenuesCosto15IncomeStatementAnalysisTherearethreethingstokeepinmindwhenanalyzinganincomestatement:GenerallyAcceptedAccountingPrinciples(GAAP)Non-CashItemsTimeandCosts公司理财Ross-Chap002IncomeStatementAnalysisThere16GAAPThematchingprincipleofGAAPdictatesthatrevenuesbematchedwithexpenses.Thus,incomeisreportedwhenitisearned,eventhoughnocashflowmayhaveoccurred.公司理财Ross-Chap002GAAPThematchingprincipleof17Non-CashItemsDepreciationisthemostapparent.Nofirmeverwritesacheckfor“depreciation.”Anothernon-cashitemisdeferredtaxes,whichdoesnotrepresentacashflow.Thus,netincomeisnotcash.公司理财Ross-Chap002Non-CashItemsDepreciationis18TimeandCostsIntheshort-run,certainequipment,resources,andcommitmentsofthefirmarefixed,butthefirmcanvarysuchinputsaslaborandrawmaterials.Inthelong-run,allinputsofproduction(andhencecosts)arevariable.Financialaccountantsdonotdistinguishbetweenvariablecostsandfixedcosts.Instead,accountingcostsusuallyfitintoaclassificationthatdistinguishesproductcostsfromperiodcosts.公司理财Ross-Chap002TimeandCostsIntheshort-run192.3TaxesTheonethingwecanrelyonwithtaxesisthattheyarealwayschangingMarginalvs.averagetaxratesMarginal–thepercentagepaidonthenextdollarearnedAverage–thetaxbill/taxableincomeOthertaxes公司理财Ross-Chap0022.3TaxesTheonethingwecan20MarginalversusAverageRatesSupposeyourfirmearns$4millionintaxableincome.Whatisthefirm’staxliability?Whatistheaveragetaxrate?Whatisthemarginaltaxrate?Ifyouareconsideringaprojectthatwillincreasethefirm’staxableincomeby$1million,whattaxrateshouldyouuseinyouranalysis?公司理财Ross-Chap002MarginalversusAverageRates212.4NetWorkingCapitalNetWorkingCapital≡

CurrentAssets–CurrentLiabilitiesNWCusuallygrowswiththefirm公司理财Ross-Chap0022.4NetWorkingCapitalNetWor22U.S.C.C.BalanceSheet2010200920102009Currentassets:CurrentLiabilities:Cashandequivalents$140$107Accountspayable$213$197Accountsreceivable294270Notespayable5053Inventories269280Accruedexpenses223205Other5850Totalcurrentliabilities$486$455Totalcurrentassets$761$707Long-termliabilities:Fixedassets:Deferredtaxes$117$104Property,plant,andequipment$1,423$1,274Long-termdebt471458Lessaccumulateddepreciation(550)(460Totallong-termliabilities$588$562Netproperty,plant,andequipment873814Intangibleassetsandother245221Stockholder'sequity:Totalfixedassets$1,118$1,035Preferredstock$39$39Commonstock($1parvalue)5532Capitalsurplus347327Accumulatedretainedearnings390347Lesstreasurystock(26)(20)Totalequity$805$725Totalassets$1,879$1,742Totalliabilitiesandstockholder'sequity$1,879$1,742HereweseeNWCgrowto$275millionin2010from$252millionin2009.Thisincreaseof$23millionisaninvestmentofthefirm.$23million$275m=$761m-$486m$252m=$707-$455公司理财Ross-Chap002U.S.C.C.BalanceSheet20102009232.5FinancialCashFlowInfinance,themostimportantitemthatcanbeextractedfromfinancialstatementsistheactualcashflowofthefirm.Sincethereisnomagicinfinance,itmustbethecasethatthecashflowreceivedfromthefirm’sassetsmustequalthecashflowstothefirm’screditorsandstockholders.CF(A)≡

CF(B)+CF(S)

公司理财Ross-Chap0022.5FinancialCashFlowInfina24U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending-173(Acquisitionsoffixedassetsminussalesoffixedassets)Additionstonetworkingcapital-23Total$42CashFlowofInvestorsintheFirmDebt$36(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity6(Dividendsplusrepurchaseofequityminusnewequityfinancing)Total$42OperatingCashFlow:EBIT $219Depreciation $90CurrentTaxes -$71OCF $238公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa25U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)TotalCapitalSpendingPurchaseoffixedassets $198Salesoffixedassets -$25CapitalSpending $173-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa26U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)TotalNWCgrewfrom$275millionin2010from$252millionin2009.Thisincreaseof$23millionistheadditiontoNWC.-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa27U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)Total-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa28U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)TotalCashFlowtoCreditorsInterest $49Retirementofdebt73 Debtservice 122Proceedsfromnewdebtsales -86Total $36-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa29U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)TotalCashFlowtoStockholdersDividends $43Repurchaseofstock6 CashtoStockholders49Proceedsfromnewstockissue -43Total $6-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa30U.S.C.C.FinancialCashFlowCashFlowoftheFirmOperatingcashflow$238(Earningsbeforeinterestandtaxesplusdepreciationminustaxes)Capitalspending(Acquisitionsoffixedassetsminussalesoffixedassets)AdditionstonetworkingcapitalTotalCashFlowofInvestorsintheFirmDebt(Interestplusretirementofdebtminuslong-termdebtfinancing)Equity(Dividendsplusrepurchaseofequityminusnewequityfinancing)TotalThecashflowreceivedfromthefirm’sassetsmustequalthecashflowstothefirm’screditorsandstockholders:-173-23$42$366$42公司理财Ross-Chap002U.S.C.C.FinancialCashFlowCa312.5TheStatementofCashFlowsThereisanofficialaccountingstatementcalledthestatementofcashflows.Thishelpsexplainthechangeinaccountingcash,whichforU.S.Compositeis$33millionin2010.Thethreecomponentsofthestatementofcashflowsare:CashflowfromoperatingactivitiesCashflowfrominvestingactivitiesCashflowfromfinancingactivities公司理财Ross-Chap0022.5TheStatementofCashFlow32U.S.C.C.CashFlowfromOperationsTocalculatecashflowfromoperations,startwithnetincome,addbacknon-cashitemslikedepreciationandadjustforchangesincurrentassetsandliabilities(otherthancash).OperationsNetIncomeDepreciationDeferredTaxesChangesinAssetsandLiabilitiesAccountsReceivableInventoriesAccountsPayableAccruedExpensesOtherTotalCashFlowfromOperations$869013-24111618$202-8公司理财Ross-Chap002U.S.C.C.CashFlowfromOperat33U.S.C.C.CashFlowfromInvestingCashflowfrominvestingactivitiesinvolveschangesincapitalassets:acquisitionoffixedassetsandsalesoffixedassets(i.e.,netcapitalexpenditures).AcquisitionoffixedassetsSalesoffixedassetsTotalCashFlowfromInvestingActivities-$19825-$173公司理财Ross-Chap002U.S.C.C.CashFlowfromInvest34U.S.C.C.CashFlowfromFinancingCashflowstoandfromcreditorsandownersincludechangesinequityanddebt.Retirementofdebt(includesnotes)Proceedsfromlong-termdebtsales-$7386TotalCashFlowfromFinancing$4Dividends