公司理财第七版Chap003.ppt

AccountingandFinance Understandingfinancialaccountingisessentialtounderstandingcorporatefinance KeyComponentsoftheFinancials TheBalanceSheetTheIncomeStatementTheStatementofCashFlows 3 2 TheBalanceSheet TheBalanceSheetisafinancialstatementthatshowsthefirm sassetsandliabilitiesataparticulartime Whyisituseful Shareholders Equity TotalAssets TotalLiabilities 3 3 TheBalanceSheet CurrentAssetsCash SecuritiesReceivablesInventories FixedAssetsTangibleAssetsIntangibleAssets TotalAssets CurrentLiabilitiesPayablesShort termDebt Long termLiabilities Shareholders Equity TotalLiabilities Shareholders Equity 3 4 Assets Assetsrepresenttheusesofafirm sfundsi e Assetsshowwhatthefirm owns LiquidAssetscanbeconvertedeasilyintocash Currentvs FixedAssets 3 5 CurrentAssets Examples Whichofthefollowingassetsistypicallyconsideredmostliquid Leastliquid MarketablesecuritiesAccountsreceivableInventories Whichofthefollowingisacurrentasset PropertythatafirmownsAfirm sproductionequipmentUnsoldinventories 3 6 FixedAssets TangibleAssetsIntangibleAssetsGoodwill 3 7 FixedAssets Example Whichofthefollowingrepresenttangibleassets Intangibleassets PropertyProductionFacilitiesPatentsProductionEquipmentTrademarksCopyrights 3 8 Liabilities Liabilitiesrepresentthesourcesofafirm sfunding i e Liabilitiesrepresentwhatafirm owes Currentvs Long TermLiabilitiesCurrentAssets CurrentLiabilities NetWorkingCapital 3 9 Liabilities Example Whichofthefollowingisacurrentliability Bonddebtthatmaturesin3yearsAbankloanthatisduein24monthsAnobligationtopayasupplierwithin6months 3 10 NetWorkingCapital Example Inthebalancesheetbelow whatwasthevalueofnetworkingcapitalin2008 2009 3 11 BookValuesvs MarketValues GAAP GenerallyAcceptedAccountingPrinciples BookValueValueofassetsorliabilitiesaccordingtothebalancesheet ValuesrecordedattheirhistoricalcostadjustedfordepreciationMarketValueThevalueofassetsorliabilitiesweretheytoberesoldinamarket 3 12 Common SizeBalanceSheet Allbalancesheetitemsareexpressedasapercentageoftotalassets Whyisthisuseful 3 13 Common SizeBalanceSheet Example Notethechangesfrom2008to2009 3 14 TheIncomeStatement IncomeStatement afinancialstatementthatshowstherevenues expenses andnetincomeofafirmoveraperiodoftime Whyisthisuseful 3 15 Common sizeIncomeStatement Allitemsonacommon sizeincomestatementareexpressedasapercentageofrevenues Whyisthisuseful 3 16 IncomeStatement Example Intheincomestatementbelow whatwasthevalueofHomeDepot sEBITin2009 CommonSizeIncomeStatement rightcolumn 3 17 Profitsvs CashFlow Differencesbetweenprofits cashflow DepreciationCashvs accrualaccounting 3 18 CashFlows Example Considerafirmthatspends 1 000toproducegoodsinperiod1 Inperiod2 itsellshalfofthesegoodsfor 750andcollectspaymentoneperiodlater Thefirmsellstheotherhalfinperiod3foranother 750 andcollectspaymentonthesesalesinperiod4 Whatarethecashflowsineachofthe4periodsforthefirm 3 19 TheStatementofCashFlows TheStatementofCashFlowsshowsthefirm scashreceiptsandcashpaymentsovertime Whyisituseful FreeCashFlowiscashavailablefordistributiontoinvestorsafterthefirmpaysfornewinvestmentsoradditionstoworkingcapital 3 20 TheStatementofCashFlows Cashflowfromoperations Cashflowfrominvestments Cashflowfromfinancing Changeincashbalance Structure 3 21 CashFlow Example Netincomeforyourfirmwas 10 000lastyear Thedepreciationexpensewas 2 500 accountsreceivableincreased 1 250 accountspayableincreased 800 andinventoriesincreasedby 2 000 Whatwasthetotalcashflowfromoperationsfortheperiod Netincome 10 000Depreciation 2 500AccountsReceivable 1 250 AccountsPayable 800Inventories 2 000 Cashflowfromoperations 10 050 3 22 AccountingPractice Mostmanagerssaythataccountingearningsisthesinglemostimportantnumberreportedtoinvestors Whatimplicationsdoesthishavefortheinvestor 3 23 AccountingPractice Greyareasforfinancialmanagers RevenuerecognitionCookie jarreserves 3 24 AccountingPractice Additionalgreyareasforfinancialmanagers Off balancesheetassetsandliabilitiesMark to marketaccounting 3 25 CorporateTaxes IntheUnitedStates corporationspaytaxontheirincome USCorporateTaxRates 2011 3 26 CorporateTaxes Example Whatisthemarginaltaxrateforacorporationwith 60 000taxableincomeandanaveragetaxrateof16 67 ifthenext lowestmarginaltaxrateof15 coverstaxableincomesupto 50 000 60 000 16 67 10 000totaltaxespaid 10 000 marginaltaxrate 2 500MarginalTaxRate 25 3 27 PersonalTax USPersonalTaxRates 2011 3 28 PersonalTax Example Whatistheaveragetaxrateforanindividualwithanetincomeof 50 000andatotalt