Accounting-Statements--a課件(PPT 54頁)

1、Corporate Finance Ross Westerfield JaffeSixth EditionSixth Edition2Chapter TwoAccounting Statements and Cash Flow第1頁，共54頁。Chapter Outline2.1 The Balance Sheet2.2 The Income Statement2.3 Net Working Capital2.4 Financial Cash Flow2.5 Summary and Conclusions第2頁，共54頁。Sources of InformationAnnual reports

2、Wall Street JournalInternet上海證券交易所： /sseportal/ps/zhs/home.html深圳證券交易所長城證券：高速行情/index.jspNYSE ()Nasdaq ()Text (/cj)SECEDGAR10K & 10Q reports第3頁，共54頁。2.1 The Balance SheetAn accountants snapshot of the firms accounting value as of a particular date.The Balance Sheet Identity is:It is a convenient mea

3、ns 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: accounting liquidity, debt versus equity, and value versus cost.

4、第4頁，共54頁。The Balance Sheet of the U.S. Composite Corporation(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 receivable2

5、94270 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 depreciation-550-460 To

6、tal 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 per value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock-26-20 To

7、tal 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 normally would take a firm with ongoing operations to convert them into cash.Clearly, cash is much more liquid than property, plant and equipment.第5頁

8、，共54頁。Balance Sheet AnalysisWhen analyzing a balance sheet, the financial manager should be aware of three concerns:Accounting liquidity（會計流動性）Debt versus equity（債務(wù)與權(quán)益）Value versus cost（市價與成本）第6頁，共54頁。Accounting Liquidity Refers to the ease and quickness with which assets can be converted to cash.Cu

9、rrent 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.第7頁，共54頁。Debt versus EquityGenerally, when a firm

10、borrows it gives the bondholders first claim on the firms cash flow.Thus shareholders equity is the residual difference between assets and liabilities.第8頁，共54頁。Value versus CostUnder GAAP（Generally Accepted Accounting Principles） audited financial statements of firms in the U.S. carry assets at cost

11、.China: Accounting Standards for Business Enterprises(企業(yè)會計準則 2006）Market value is a completely different concept.第9頁，共54頁。2.2 The Income StatementThe income statement measures performance over a specific period of time.The accounting definition of income is第10頁，共54頁。U.S.C.C. Income Statement (in $ m

12、illions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling, general, and administrative expensesDepreciationOperating incomeOther incomeEarnings before interest and taxesInterest expensePretax incomeTaxes Current: $71 Deferred: $13Net income Retained earn

13、ings: $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$86第11頁，共54頁。(in $ millions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenues$2,262Cost of goods so

14、ld- 1,655Selling, general, and administrative expenses- 327Depreciation- 90Operating income$190Other income29Earnings before interest and taxes$219Interest expense- 49Pretax income$170Taxes- 84 Current: $71 Deferred: $13Net income$86 Retained earnings: $43 Dividends: $43The non-operating section of

15、the income statement includes all financing costs, such as interest expense.U.S.C.C. Income Statement第12頁，共54頁。(in $ millions)20X2Income StatementU.S. COMPOSITE CORPORATIONTotal operating revenuesCost of goods soldSelling, general, and administrative expensesDepreciationOperating incomeOther incomeE

16、arnings before interest and taxesInterest expensePretax incomeTaxes 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 Stat

17、ement第13頁，共54頁。(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: $71 Deferred: $13N

18、et 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 Statement第14頁，共54頁。Income Statement AnalysisThere are three things to keep in mind when analyzing an income statement:GAAPNon Cash ItemsTime and Costs第15頁，共54

19、頁。Generally Accepted Accounting PrinciplesGAAPThe matching principal of GAAP dictates that revenues be matched with expenses. Thus, income is reported when it is earned, even though no cash flow may have occurred第16頁，共54頁。Income Statement AnalysisNon Cash ItemsDepreciation is the most apparent. No f

20、irm ever writes a check for “depreciation”.Another noncash item is deferred taxes, which does not represent a cash flow.第17頁，共54頁。Income Statement AnalysisTime and CostsIn the short run, certain equipment, resources, and commitments of the firm are fixed, but the firm can vary such inputs as labor a

21、nd 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 distinguishes product costs from period costs.第18頁，共54頁。2.3 Net

22、Working CapitalNWC is usually growing with the firm. 第19頁，共54頁。The 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

23、payable$213$197 Accounts 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

24、 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$1,035 Preferred stock$39$39 Common stock ($1 par value)5532 Capital surplus347327 Accumulated retained earning

25、s390347 Less treasury stock-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 =

26、$707- $455第20頁，共54頁。2.4 Financial Cash FlowIn 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 received from the firms assets must equal the cash flows to th

27、e firms creditors and stockholders.第21頁，共54頁。Financial 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

28、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$42Operating Cash Flow:EBIT$219Deprec

29、iation $90Current Taxes($71)OCF$238第22頁，共54頁。Financial 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

30、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$42Capital SpendingPurchase of fixed

31、assets $198Sales of fixed assets (25)Capital Spending $173第23頁，共54頁。Financial 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 (

32、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) Total$42NWC grew fr

33、om $275 million in 20X2 from $252 million in 20X1.This increase of $23 million is the addition to NWC.第24頁，共54頁。Financial 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 dep

34、reciation 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-term debt financing)Equity6 (Dividends plus repurchase of equity min

35、us new equity financing) Total$42第25頁，共54頁。Financial 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 ass

36、ets 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 CreditorsInterest$49Ret

37、irement of debt 73Debt service122Proceeds from new debt sales (86)Total36第26頁，共54頁。Financial 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

38、 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) Tota

39、l$42Cash Flow to StockholdersDividends $43Repurchase of stock 6Cash to Stockholders 49Proceeds from new stock issue (43)Total $6第27頁，共54頁。Financial 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 i

40、nterest 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-term debt financing)Equity6 (Dividends plu

41、s repurchase of equity minus new equity financing) Total$42The cash from received from the firms assets must equal the cash flows to the firms creditors and stockholders:第28頁，共54頁。2.5 Summary and ConclusionsFinancial statements provide important information regarding the value of the firm.You should

42、 keep in mind:Measures of profitability do not take risk or timing of cash flows into account.Financial ratios are linked to one another.第29頁，共54頁。Corporate Finance Ross Westerfield JaffeSixth EditionSixth Edition3Chapter Three Financial Markets and Net Present Value第30頁，共54頁。Chapter Outline3.1 The

43、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 DecisionMaking3.8 Summary and Conclusions第31頁，共54頁。3.1 The Financial Market EconomyIndividuals

44、 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.第32頁，共54頁。The Financial Market Economy: ExampleConsider a dentist who earns $200,000 per year and chooses to co

45、nsume $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 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)$3

46、0,000(1+r)$30,000(1+r)第33頁，共54頁。The Financial Market Economy: ExampleRather 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

47、 of the 4 college seniors. Student #1Student #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)第34頁，共54頁。The Financial Market Economy: ExampleFinancial intermediation can take three forms:Size intermediationIn the exampl

48、e above, the bank took a large loan from the dentist and made small loans to the students.Term intermediationCommercial banks finance long-term mortgages with short-term deposits.Risk intermediationFinancial intermediaries can tailor the risk characteristics of securities for borrowers and lenders w

49、ith different degrees of risk tolerance.第35頁，共54頁。Market ClearingThe job of balancing the supply of and demand for loanable funds is taken by the money market.When the quantity supplied equals the quantity demanded, the market is in equilibrium at the equilibrium price.The price of money is the inte

50、rest rate.第36頁，共54頁。3.2 Making Consumption Choices over TimeAn individual can alter his consumption across time periods through borrowing and lending.We can illustrate this by graphing consumption today versus consumption in the future.This graph will show intertemporal consumption opportunities.第37

51、頁，共54頁。Intertemporal Consumption Opportunity Set$0$20,000$40,000$60,000$80,000$100,000$120,000Consumption todayA person with $95,000 who faces a 10% interest rate has the following opportunity set.One choice available is to consume $40,000 now; invest the remaining $55,000; consume $60,000 next year

52、.$0$20,000$40,000$60,000$80,000$100,000$120,000Consumption at t+1第38頁，共54頁。Intertemporal Consumption Opportunity Set$0$20,000$40,000$60,000$80,000$100,000$120,000$0$20,000$40,000$60,000$80,000$100,000$120,000Consumption todayConsumption at t+1Another choice available is to consume $60,000 now; inves

53、t the remaining $35,000; consume $38,500 next year.第39頁，共54頁。Taking Advantage of Our Opportunities$0$20,000$40,000$60,000$80,000$100,000$120,000$0$20,000$40,000$60,000$80,000$100,000$120,000Consumption todayConsumption at t+1A persons preferences will tend to decide where on the opportunity set they

54、 will choose to be.Ms. PatienceMs. Impatience第40頁，共54頁。Changing Our Opportunities$0$20,000$40,000$60,000$80,000$100,000$120,000$0$20,000$40,000$60,000$80,000$100,000$120,000Consumption todayConsumption at t+1A rise in interest rates will make saving more attractive and borrowing less attractive.Cons

55、ider an investor who has chosen to consume $40,000 now and to consume $60,000 next year.第41頁，共54頁。3.3 The Competitive MarketIn a competitive market:Trading is costless.Information about borrowing and lending is availableThere are many traders; no individual can move market prices.There can be only o

56、ne equilibrium interest rate in a competitive marketotherwise arbitrage opportunities would arise.第42頁，共54頁。3.4 The Basic PrincipleThe basic financial principle of investment decision making is this:An investment must be at least as desirable as the opportunities available in the financial markets.第

57、43頁，共54頁。3.5 Practicing the Principle: A Lending ExampleConsider an investment opportunity that costs $50,000 this year an provides a certain cash flow of $54,000 next year.Is this a good deal?It depends on the interest rate available in the financial markets.The investment has an 8% return, if the

58、interest rate available elsewhere is less than this, invest here.Cash inflowsTimeCash outflows01-$50,000$54,000第44頁，共54頁。3.6 Illustrating the Investment DecisionConsider an investor who has an initial endowment of income of $40,000 this year and $55,000 next year.Suppose that he faces a 10-percent i

59、nterest rate and is offered the following investment.Cash inflowsTimeCash outflows01-$25,000$30,000第45頁，共54頁。3.6 Illustrating the Investment Decision$0Consumption todayOur investor begins with the following opportunity set: endowment of $40,000 today, $55,000 next year and a 10% interest rate.One ch

60、oice available is to consume $15,000 now; invest the remaining $25,000 in the financial markets at 10%; consume $82,500 next year.$0$99,000Consumption at t+1$55,000$82,500$40,000$15,000$90,000第46頁，共54頁。3.6 Illustrating the Investment Decision$0Consumption todayA better alternative would be to invest