Ch2Accounting statements and Cash flows(澳大利亚新英格兰大学公司金融课件)概要1.pptVIP

Lecture 2 Accounting statements and Cash flows Balance Sheet Income Statement Financial Cash Flow Balance Sheet Balance Sheet (continue) [Table 1] Balance Sheet of US Composite Corp. 19x2 and 19x1 ($million) [Table 1] Balance Sheet (continue) Income Statement Income Statement (continue) [Table 2] Income Statement of US Composite Corp. ($million) [Table 3] Financial Cash Flow of US Composite Corp. 19x2 ($million) [Table 4] Statement of Cash Flows of US Composite Corp. 19x2 * Components of balance sheet Current assets Fixed assets ( tangible ) ( intangible ) Current liabilities Long-term debt Shareholder’s equity Net working capital Assets = Liability + stock holder’s Equity Snapshot of firm’s accounting value at a particular date Assets are listed in the order of accounting liquidity Liabilities and equity are listed in the order in which they must be repaid Debt service is contracted payments of principle and interest on debt - put the firm in default if not paid Accounting value (historical cost of assets) does not reflect market value of assets Many valuable assets do not appear in the balance sheet : - good management practice, good reputation, etc. Measures performance of the firm over a specific period Accounting definition of income Income = Revenue - Expenses Revenue is recorded upon an exchange of goods or services not count unrealized appreciation of tangible assets. GAAP Expenses include some non-cash items - Depreciation change in value of existing assets and allowances for asset replacement or repair - Deferred taxes results from differences between accounting income and taxable income Costs are classified into product costs total production cost raw material, labor, manufacturing overhead reported as cost of goods sold period costs allocated to a time period, for example, salaries reported as selling, general and administrative expenses Do not distinguish between variable (long run) costs and fixed (short run) costs Financial Cash Flow Firm