罗斯公司理财英文第九版Chap002.pptxVIP

Financial Statements and Cash FlowChapter 2Copyright ? 2021 by the McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin Key Concepts and SkillsUnderstand the information provided by financial statementsDifferentiate between book and market valuesKnow the difference between average and marginal tax ratesKnow the difference between accounting income and cash flowCalculate a firm’s cash flow Chapter Outline2.1 The Balance Sheet2.2 The Income Statement2.3 Taxes2.4 Net Working Capital2.5 Financial Cash Flow2.6 The Accounting Statement of Cash Flows2.7 Cash Flow Management Sources of Information 2.1 The Balance SheetAn accountant’s snapshot of the firm’s accounting value at a specific point in timeThe Balance Sheet Identity is:Assets ≡ Liabilities + Stockholder’s Equity U.S. Composite Corporation Balance Sheet2021202120212021Current assets:Current Liabilities: Cash and equivalents$140$107 Accounts payable$213$197 Accounts receivable294270 Notes payable5053 Inventories269280 Accrued expenses223205 Other5850 Total current liabilities$486$455 Total current assets$761$707Long-term liabilities:Fixed assets: Deferred taxes$117$104 Property, plant, and equipment$1,423$1,274 Long-term debt471458 Less accumulated depreciation(550)(460) Total long-term liabilities$588$562 Net property, plant, and equipment873814 Intangible assets and other245221Stockholders equity: Total fixed assets$1,118$1,035 Preferred stock$39$39 Common stock ($1 par value)5532 Capital surplus347327 Accumulated retained earnings390347 Less treasury stock(26)(20) Total equity$805$725Total assets$1,879$1,742Total liabilities and stockholders equity$1,879$1,742The assets are listed in order by the length of time it would normally take a firm with ongoing operations to convert them into cash.Clearly, cash is much more liquid than property, plant, and equipment. Balance Sheet AnalysisWhen analyzing a balance sheet, the Finance Manage