金融学英文课件：Chapter 3 Interpreting Financial Statements.pptVIP

Chapter 3: Interpreting Financial Statements Financial Statements Review Financial Statements Provide: current and historical information to owners and creditors a convenient way for owners and creditors to set performance targets a convenient standard template for financial planning Chapter 3 Contents 3.1 Functions of Financial Statements 3.2 International Differences in Accounting 3.3 Market values v. Book Values 3.4 Accounting v. Economic Measures of Income 3.5 Return on Shareholders v. Return on Equity 3.6 Analysis Using Financial Ratios 3.7 The Financial Planning Process 3.8 Constructing a Financial Planning Model 3.9 Growth the Need for External Financing 3.10 Working Capital Mgnt. 3.11 Liquidity Cash Mgnt. 3.1 Functions of Financial Statements Financial Statements: Provide information to the owners creditors of a firm about the current status and past performance Provide a convenient way for owners creditors to set performance targets to impose restrictions of the managers of the firm Provide a convenient templates for financial planning 3.2 Review of Financial Statements The Balance Sheet Summarizes a firms assets, liabilities, and owner’s equity at a moment in time Amounts measured at historical values and historical exchange rates Prepared according to GAAP, Generally Accepted Accounting Principles GAAP modified occasionally by the Financial Accounting Standards Board Exchange-listed companies must comply with Securities and Exchange Commission (SEC) rules The Balance Sheet Major Divisions: Assets Current assets (less than a year) Long-term assets (longer than a year Depreciation Liabilities and Stockholder’s Equity Liabilities Current Liabilities Long-term debt Equity The Income Statement Summarizes the profitability of a company during a time period Major Divisions: Revenue cost of goods sold Gross margin General administrative and selling expenses (GSA) Operating income Debt service Taxable income Corporate Taxes Net income The Income State