第二章会报表与现金流量.ppt

Chapter Outline 2.1 The Balance Sheet 2.2 The Income Statement 2.3 Net Working Capital 2.4 Financial Cash Flow 2.5 Summary and Conclusions Sources of Information Annual reports Wall Street Journal Internet NYSE () Nasdaq () Text (/cj) SEC EDGAR 10K 10Q reports 2.1 The Balance Sheet The Balance Sheet of the U.S. Composite Corporation Balance Sheet Analysis When analyzing a balance sheet, the financial manager should be aware of three concerns: Accounting liquidity Debt versus equity Value versus cost Accounting Liquidity Refers to the ease and quickness with which assets can be converted to cash. Current assets are the most liquid. Some fixed assets are intangible. The more liquid a firm’s 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. Debt versus Equity Generally, when a firm borrows it gives the bondholders first claim on the firm’s cash flow. Thus shareholder’s equity is the residual difference between assets and liabilities. Value versus Cost Under GAAP audited financial statements of firms in the U.S. carry assets at cost. Market value is a completely different concept. 2.2 The Income Statement The income statement measures performance over a specific period of time. The accounting definition of income is U.S.C.C. Income Statement U.S.C.C. Income Statement U.S.C.C. Income Statement U.S.C.C. Income Statement Income Statement Analysis There are three things to keep in mind when analyzing an income statement: GAAP Non Cash Items Time and Costs Generally Accepted Accounting Principles GAAP The 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 Income Statement Analysis Non Cash Items Depreciation is the most apparent. No firm ever writes a check for “depreciation”. Another noncash item is deferred taxes, which does not represent a cash