财务管理基础综述(英文版).pptVIP

Chapter 6;After Studying Chapter 6, you should be able to:;Financial Statements A Possible Framework for Analysis Balance Sheet Ratios Income Statement and Income/Balance Sheet Ratios Trend Analysis Common-Size and Index Analysis;Trade Creditors – Focus on the liquidity of the firm. Bondholders – Focus on the long-term cash flow of the firm. Shareholders – Focus on the profitability and long-term health of the firm.;Plan – Focus on assessing the current financial position and evaluating potential firm opportunities. Control – Focus on return on investment for various assets and asset efficiency. Understand – Focus on understanding how suppliers of funds analyze the firm.;Convergence of Accounting Standards: Aims to narrow or remove differences so that investors can better understand financial statements prepared under different accounting frameworks IASB – International Accounting Standards Board has the responsibility of IFRS IFRS – International Financial Reporting Standards (EU countries adopted) US GAAP – US Generally Accepted Accounting Principles determined by FASB FASB – Financial Accounting Standards Board determines accounting standards for financial statements;Income Statement A summary of a firm’s revenues and expenses over a specified period, ending with net income or loss for the period.;a. How the firm stands on a specific date. b. What BW owned. c. Amounts owed by customers. d. Future expense items already paid. e. Cash/likely convertible to cash within 1 year. f. Original amount paid. g. Acc. deductions for wear and tear. ;a. Note, Assets = Liabilities + Equity. b. What BW owed and ownership position. c. Owed to suppliers for goods and services. d. Unpaid wages, salaries, etc. e. Debts payable 1 year. f. Debts payable 1 year. g. Original investment. h. Earnings reinvested.;a. Measures profitability over a time period. b. Received, or receivable, from customers. c. Sales comm., adv., officers’ salaries, etc. d. Operating