Accounting-Statements--a課件

1、McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-0Corporate Finance Ross Westerfield JaffeSixth EditionSixth Edition2Chapter TwoAccounting Statements and Cash FlowMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-1Chapter

2、 Outline2.1 The Balance Sheet2.2 The Income Statement2.3 Net Working Capital2.4 Financial Cash Flow2.5 Summary and ConclusionsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-2Sources of Information Annual reports Wall Street Journal Internet 上海證券交易所： http:/ 深

3、圳證券交易所http:/ 長城證券：高速行情http:/ NYSE () Nasdaq () Text ( SEC EDGAR 10K & 10Q reportsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-32.1 The Balance Sheet An accountants snapshot of the firms accounting value as of a particular date. The Balance Sheet Identi

4、ty is:Equity srStockholdesLiabilitieAssets It is a convenient means of organizing and summarizing what a firm owns( its assets), what a firm owes (its liabilities) and the difference between two (the firm equity) When analyzing a balance sheet, the financial manager should be aware of three concerns

5、: accounting liquidity, debt versus equity, and value versus cost.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-4The Balance Sheet of the U.S. Composite Corporation(in $ millions)20X2 and 20X1Balance SheetU.S. COMPOSITE CORPORATIONLiabilities (Debt)Assets20

6、X220X1and Stockholders Equity20X220X1Current assets:Current Liabilities: Cash and equivalents$140$107 Accounts payable$213$197 Accounts receivable294270 Notes payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabil

7、ities:Fixed assets: Deferred taxes$117$104 Property, plant, and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciation-550-460 Total long-term liabilities$588$562 Net property, plant, and equipment873814 Intangible assets and other245221Stockholders equity: Total fixed assets$1,118

8、$1,035 Preferred stock$39$39 Common stock ($1 per value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock-26-20 Total equity$805$725Total assets$1,879$1,742Total liabilities and stockholders equity $1,879$1,742The assets are listed in order by the length of time it n

9、ormally would take a firm with ongoing operations to convert them into cash.Clearly, cash is much more liquid than property, plant and equipment.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-5Balance Sheet AnalysisWhen analyzing a balance sheet, the financi

10、al manager should be aware of three concerns:1. Accounting liquidity（會計流動性）2. Debt versus equity（債務與權益）3. Value versus cost（市價與成本）McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-6Accounting Liquidity Refers to the ease and quickness with which assets can be c

11、onverted to cash. Current assets are the most liquid. Some fixed assets are intangible. The more liquid a firms assets, the less likely the firm is to experience problems meeting short-term obligations. Liquid assets frequently have lower rates of return than fixed assets.McGraw-Hill/IrwinCopyright

12、2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-7Debt versus Equity Generally, when a firm borrows it gives the bondholders first claim on the firms cash flow. Thus shareholders equity is the residual difference between assets and liabilities.McGraw-Hill/IrwinCopyright 2002 by The McGr

13、aw-Hill Companies, Inc. All rights reserved.2-8Value versus Cost Under GAAP（Generally Accepted Accounting Principles） audited financial statements of firms in the U.S. carry assets at cost. China: Accounting Standards for Business Enterprises(企業(yè)會計準則 2006） Market value is a completely different conce

14、pt.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-92.2 The Income Statement The income statement measures performance over a specific period of time. The accounting definition of income isIncomeExpensesRevenueMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hil

15、l Companies, Inc. All rights reserved.2-10U.S.C.C. Income Statement (in $ millions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling, general, and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest e

16、xpensePretax incomeTaxes Current: $71 Deferred: $13Net income Retained earnings: $43 Dividends: $43The operations section of the income statement reports the firms revenues and expenses from principal operations$2,262- 1,655- 327- 90$19029$219- 49$170- 84$86McGraw-Hill/IrwinCopyright 2002 by The McG

17、raw-Hill Companies, Inc. All rights reserved.2-11(in $ millions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenues$2,262Cost of goods sold- 1,655Selling, general, and administrative expenses- 327Depreciation- 90Operating income$190Other income29Earnings before interest and taxes$

18、219Interest expense- 49Pretax income$170Taxes- 84 Current: $71 Deferred: $13Net income$86 Retained earnings: $43 Dividends: $43The non-operating section of the income statement includes all financing costs, such as interest expense.U.S.C.C. Income StatementMcGraw-Hill/IrwinCopyright 2002 by The McGr

19、aw-Hill Companies, Inc. All rights reserved.2-12(in $ millions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling, general, and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeT

20、axes Current: $71 Deferred: $13Net income Retained earnings: $43 Dividends: $43Usually a separate section reports as a separate item the amount of taxes levied on income.$2,262- 1,655- 327- 90$19029$219- 49$170- 84$86U.S.C.C. Income StatementMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Compani

21、es, Inc. All rights reserved.2-13(in $ millions)20 x2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling, general, and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current:

22、$71 Deferred: $13Net income Retained earnings: $43 Dividends: $43Net income is the “bottom line”.$2,262- 1,655- 327- 90$19029$219- 49$170- 84$86U.S.C.C. Income StatementMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-14Income Statement AnalysisThere are three

23、 things to keep in mind when analyzing an income statement:1. GAAP2. Non Cash Items3. Time and CostsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-15Generally Accepted Accounting Principles1. GAAPThe matching principal of GAAP dictates that revenues be match

24、ed with expenses. Thus, income is reported when it is earned, even though no cash flow may have occurredMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-16Income Statement Analysis2. Non Cash ItemsDepreciation is the most apparent. No firm ever writes a check

25、for “depreciation”.Another noncash item is deferred taxes, which does not represent a cash flow.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-17Income Statement Analysis3. Time and CostsIn the short run, certain equipment, resources, and commitments of the

26、firm are fixed, but the firm can vary such inputs as labor and raw materials.In the long run, all inputs of production (and hence costs) are variable.Financial accountants do not distinguish between variable costs and fixed costs. Instead, accounting costs usually fit into a classification that dist

27、inguishes product costs from period costs.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-182.3 Net Working CapitalNWC is usually growing with the firm. sLiabilitieCurrent - AssetsCurrent Capital gNet WorkinMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill C

28、ompanies, Inc. All rights reserved.2-19The Balance Sheet of the U.S.C.C.(in $ millions)20X2 and 20X1Balance SheetU.S. COMPOSITE CORPORATIONLiabilities (Debt)Assets20X220X1and Stockholders Equity20X220X1Current assets:Current Liabilities: Cash and equivalents$140$107 Accounts payable$213$197 Accounts

29、 receivable294270 Notes payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets: Deferred taxes$117$104 Property, plant, and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciatio

30、n-550-460 Total long-term liabilities$588$562 Net property, plant, and equipment873814 Intangible assets and other245221Stockholders equity: Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock ($1 par value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury st

31、ock-26-20 Total equity$805$725Total assets$1,879$1,742Total liabilities and stockholders equity $1,879$1,742Here we see NWC grow to $275 million in 20X2 from $252 million in 20X1. This increase of $23 million is an investment of the firm.$23 million$275m = $761m- $486m$252m = $707- $455McGraw-Hill/I

32、rwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-202.4 Financial Cash Flow In finance, the most important item that can be extracted from financial statements is the actual cash flow of the firm. Since there is no magic in finance, it must be the case that the cash from re

33、ceived from the firms assets must equal the cash flows to the firms creditors and stockholders.)()()(SCFBCFACFMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-21Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE CORPORATION

34、Cash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retiremen

35、t of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42Operating Cash Flow:EBIT$219Depreciation $90Current Taxes ($71)OCF$238McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-22Financial Cash Fl

36、ow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working cap

37、ital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42Capital SpendingPurchase of fixed assets $198Sales of fixed assets (25)Capital Spending $173McGr

38、aw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-23Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Cap

39、ital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing)

40、Total$42NWC grew from $275 million in 20X2 from $252 million in 20X1.This increase of $23 million is the addition to NWC.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-24Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE

41、CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plu

42、s retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-25Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S

43、. COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (

44、Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42Cash Flow to CreditorsInterest$49Retirement of debt 73Debt service122Proceeds from new debt sales (86)Total36McGraw-Hill/IrwinCopyright 2002 by The McGraw-

45、Hill Companies, Inc. All rights reserved.2-26Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE CORPORATIONCash Flow of the FirmOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed a

46、ssets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42Cash Flow to StockholdersDividends

47、 $43Repurchase of stock 6Cash to Stockholders 49Proceeds from new stock issue (43)Total $6McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-27Financial Cash Flow of the U.S.C.C.(in $ millions)20X2Financial Cash FlowU.S. COMPOSITE CORPORATIONCash Flow of the Fir

48、mOperating cash flow$238 (Earnings before interest and taxes plus depreciation minus taxes)Capital spending-173 (Acquisitions of fixed assets minus sales of fixed assets)Additions to net working capital-23 Total$42Cash Flow of Investors in the FirmDebt$36 (Interest plus retirement of debt minus long

49、-term debt financing)Equity6 (Dividends plus repurchase of equity minus new equity financing) Total$42)()()(SCFBCFACFThe cash from received from the firms assets must equal the cash flows to the firms creditors and stockholders:McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All r

50、ights reserved.2-282.5 Summary and Conclusions Financial statements provide important information regarding the value of the firm. You should keep in mind: Measures of profitability do not take risk or timing of cash flows into account. Financial ratios are linked to one another.McGraw-Hill/IrwinCop

51、yright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-29Corporate Finance Ross Westerfield JaffeSixth EditionSixth Edition3Chapter Three Financial Markets and Net Present ValueMcGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-30Chapter Outline3.1

52、 The Financial Market Economy3.2 Making Consumption Choices Over Time3.3 The Competitive Market3.4 The Basic Principle3.5 Practicing the Principle3.6 Illustrating the Investment Decision3.7 Corporate Investment Decision Making3.8 Summary and ConclusionsMcGraw-Hill/IrwinCopyright 2002 by The McGraw-H

53、ill Companies, Inc. All rights reserved.2-313.1 The Financial Market Economy Individuals and institutions have different income streams and different intertemporal consumption preferences. Because of this, a market has arisen for money. The price of money is the interest rate.McGraw-Hill/IrwinCopyri

54、ght 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-32The Financial Market Economy: Example Consider a dentist who earns $200,000 per year and chooses to consume $80,000 per year. He has $120,000 in surplus money to invest. He could loan $30,000 to each of 4 college seniors. They each

55、promise to pay him back with interest after they graduate in one year.DentistStudent #1Student #2Student #3Student #4$30,000$30,000$30,000$30,000$30,000(1+r)$30,000(1+r)$30,000(1+r)$30,000(1+r)McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-33The Financial Ma

56、rket Economy: Example Rather than performing the credit analysis 4 times, he could loan the whole $120,000 to a financial intermediary in return for a promise to repay the $120,000 in one year with interest. The intermediary in turn loans $30,000 to each of the 4 college seniors. Student #1Student #

57、2Student #3Student #4$30,000$30,000$30,000Bank$120,000Dentist$30,000$30,000(1+r)$30,000(1+r)$30,000(1+r)$30,000(1+r)$120,000(1+r)McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-34The Financial Market Economy: Example Financial intermediation can take three fo

58、rms: Size intermediation In the example above, the bank took a large loan from the dentist and made small loans to the students. Term intermediation Commercial banks finance long-term mortgages with short-term deposits. Risk intermediation Financial intermediaries can tailor the risk characteristics

59、 of securities for borrowers and lenders with different degrees of risk tolerance.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-35Market Clearing The job of balancing the supply of and demand for loanable funds is taken by the money market. When the quantit

60、y supplied equals the quantity demanded, the market is in equilibrium at the equilibrium price. The price of money is the interest rate.McGraw-Hill/IrwinCopyright 2002 by The McGraw-Hill Companies, Inc. All rights reserved.2-363.2 Making Consumption Choices over Time An individual can alter his consumpt