金融学原理Principles of Finance双语课件 07 Analysis of Financial Statements.pptVIP

Analysis of Financial Statements Chapter 7 Financial Statements and Reports Annual Report a report issued annually by a corporation to its stockholders management’s opinion of the past year’s operations and the firm’s future prospects Financial Statements and Reports Annual Report basic financial statements income statement balance sheet statement of retained earnings statement of cash flows Financial Statements and Reports Income Statement a statement summarizing the firm’s revenues and expenses over an accounting period, generally a quarter or a year Financial Statements and Reports Balance Sheet a statement of the firm’s financial position at a specific point in time Financial Statements and Reports Balance Sheet - points worth noting 1. Cash versus other assets 2. Liabilities versus stockholders equity 3. Breakdown of common equity account common stock paid in capital retained earnings Financial Statements and Reports Balance Sheet - points worth noting 4. Accounting alternatives FIFO (first-in, first-out) LIFO (last-in, first-out) Accelerated or straight-line depreciation The time dimension balance sheet is at a point in time Financial Statements and Reports Statement of Retained Earnings a statement reporting changes in the firm’s retained earnings as a result of the income generated and retained during the year the balance sheet figure for retained earnings is the sum of the earnings retained for each year the firm has been in business Financial Statements and Reports Accounting income versus cash flow cash flows the cash receipts and the cash disbursements, as opposed to the revenues and expenses reported for computation of net income, generated by a firm during some specified period Financial Statements and Reports Accounting income versus cash flow accounting profit a firm’s net income as reported on its income statement operating cash flows those cash flows that arise from normal operations the difference between cash collections and cash expens