金融管理基础英文版第16版人大版MGH版课件BHD_16e_Chap004
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• May represent highs or low sales volume • May require dividends, taxes or capital expenditures
4-18
Table 4-9 Monthly Sales Pattern
4-19
Cash Receipts
4-26
Table 4-14 Monthly Cash Flow
• Difference between monthly receipts and payments is net cash flow for month
• Allows firm to anticipate need for outside funding at end of each month
• Three financial statements for forecasting are pro forma income statement, cash budget and pro forma balance sheet
• Percent-of-sales method used for forecasting • Methods to determine amount of new funds
4-27
Table 4-15 Cash Budget with Borrowing and Repayment Provisions
• Assumptions for table 4-15
• Firm wishes to maintain minimum cash balance of $5,000 • If balance goes below minimum, firm will borrow • If balance goes above minimum, firm will use excess to
• Number of units produced depends on
• Beginning inventory • Sales projections • Desired ending inventory
• To determine production requirements
Units + Projected sales + Desired ending inventory – Beginning inventory = Production requirements
4-20
Table 4-10 Monthly Cash Receipts
4-21
Table 4-11 Component Costs of Manufactured Goods
4-22
Cash Payments
• Primary considerations are monthly costs associated with:
4-8
Table 4-2 Stock of Beginning Inventory
Goldman Corporation has in stock the items shown
4-9
Table 4-3 Production Requirements for Six Months
4-10
Table 4-4 Unit Costs
• Comprehensive financing plan must be developed for significant growth
4-3
Constructing Pro Forma Statements
• Pro forma financial statements enable a firm to estimate future receivables, inventory, payables, as well as anticipated profits and borrowing requirements
• Firm’s outcome through external events involves
• Risk-taking desires • Ability to hedge against risk with careful planning
• No growth or decline — not primary cause of shortage of funds
required in advance • Forecasting identifies factors affecting cash
flow
4-2
Chapter Opening
• Financial Forecasting
• Ability to plan ahead and make necessary adjustments before events occur
• Payment for material made once per month after purchases have been made
4-24
Table 4-12 Average Monthly Manufacturing Costs
4-25
Table 4-13 Summary of All Monthly Cash Payments
4-23
Cash Payments
• Assumptions for next two tables
• Costs incurred on equal monthly basis over sixmonth period
• Even production level to ensure maximum efficiency
• Inventory manufactured during period
• Material • Labor • Overhead
• Disbursements for general and administrative expenses
• Interest payments, taxes and dividends • Cash payments for new plant and equipment
• Statements are often required by bankers, other lenders as guide for the future
• Systems approach to develop pro forma statements
• Construct income statement based on sales projections and the production plan
4-13
Table 4-6 Allocation of Manufacturing Cost and Determination of Gross Profits
4-14
Table 4-7 Value of Ending Inventory
4-15
Other Expense Items
• Must be subtracted from gross profits to arrive at a net profit figure
• Pro forma income statement must be translated into cash flows
• Divide long-term pro forma income statement into smaller units
• More precise time frames are set to anticipate seasonal and monthly patterns of cash inflows and outflows
• In the case of Goldman Corporation
• Break down the pro forma income statement for first half year • Divided into monthly cash budgets
• Analysis of past sales and collection records show • 20% of sales collected in month • 80% in following month
repay outstanding loan
4-28
Pro Forma Balance Sheet
• Represents cumulative changes over time
• Provides projection on anticipated profits over subsequent period
• Important steps
• Establish sales projection • Determine production schedule, associated use of new
Table 4-1 Projected Wheel and Caster Sales
• Assume Goldman Corporation has two primary products: wheels and casters
4-7
Determine Production Schedule and Gross Profit
material, direct labor, and overhead to arrive at gross profit • Compute other expenses • Determine profit by completing actual pro forma statement
4-6
4Байду номын сангаас
Financial Forecasting
Block, Hirt, and Danielsen Foundations of Financial Management
16th edition
Learning Objectives
• Financial forecasting is essential to firm’s strategic growth
• Cost to produce each unit
4-11
Table 4-5 Total Production Costs
4-12
Cost of Goods Sold
• Costs associated with units sold during time period
• Assumptions for illustration • FIFO accounting used • First allocates cost of current sales to beginning inventory, then goods manufactured during period
• Earnings before taxes
• General and administrative expenses, interest expenses subtracted from gross profit
• Aftertax income
• Subtract taxes to determine aftertax income
• Translate this into a cash budget • Assimilate all materials into pro forma balance sheet
4-4
Figure 4-1 Development of Pro Forma Statements
4-5
Pro Forma Income Statement
• Contribution to retained earnings
• Deduct dividends to ascertain the contribution to retained earnings
4-16
Table 4-8 Income Statement
4-17
Cash Budget
4-18
Table 4-9 Monthly Sales Pattern
4-19
Cash Receipts
4-26
Table 4-14 Monthly Cash Flow
• Difference between monthly receipts and payments is net cash flow for month
• Allows firm to anticipate need for outside funding at end of each month
• Three financial statements for forecasting are pro forma income statement, cash budget and pro forma balance sheet
• Percent-of-sales method used for forecasting • Methods to determine amount of new funds
4-27
Table 4-15 Cash Budget with Borrowing and Repayment Provisions
• Assumptions for table 4-15
• Firm wishes to maintain minimum cash balance of $5,000 • If balance goes below minimum, firm will borrow • If balance goes above minimum, firm will use excess to
• Number of units produced depends on
• Beginning inventory • Sales projections • Desired ending inventory
• To determine production requirements
Units + Projected sales + Desired ending inventory – Beginning inventory = Production requirements
4-20
Table 4-10 Monthly Cash Receipts
4-21
Table 4-11 Component Costs of Manufactured Goods
4-22
Cash Payments
• Primary considerations are monthly costs associated with:
4-8
Table 4-2 Stock of Beginning Inventory
Goldman Corporation has in stock the items shown
4-9
Table 4-3 Production Requirements for Six Months
4-10
Table 4-4 Unit Costs
• Comprehensive financing plan must be developed for significant growth
4-3
Constructing Pro Forma Statements
• Pro forma financial statements enable a firm to estimate future receivables, inventory, payables, as well as anticipated profits and borrowing requirements
• Firm’s outcome through external events involves
• Risk-taking desires • Ability to hedge against risk with careful planning
• No growth or decline — not primary cause of shortage of funds
required in advance • Forecasting identifies factors affecting cash
flow
4-2
Chapter Opening
• Financial Forecasting
• Ability to plan ahead and make necessary adjustments before events occur
• Payment for material made once per month after purchases have been made
4-24
Table 4-12 Average Monthly Manufacturing Costs
4-25
Table 4-13 Summary of All Monthly Cash Payments
4-23
Cash Payments
• Assumptions for next two tables
• Costs incurred on equal monthly basis over sixmonth period
• Even production level to ensure maximum efficiency
• Inventory manufactured during period
• Material • Labor • Overhead
• Disbursements for general and administrative expenses
• Interest payments, taxes and dividends • Cash payments for new plant and equipment
• Statements are often required by bankers, other lenders as guide for the future
• Systems approach to develop pro forma statements
• Construct income statement based on sales projections and the production plan
4-13
Table 4-6 Allocation of Manufacturing Cost and Determination of Gross Profits
4-14
Table 4-7 Value of Ending Inventory
4-15
Other Expense Items
• Must be subtracted from gross profits to arrive at a net profit figure
• Pro forma income statement must be translated into cash flows
• Divide long-term pro forma income statement into smaller units
• More precise time frames are set to anticipate seasonal and monthly patterns of cash inflows and outflows
• In the case of Goldman Corporation
• Break down the pro forma income statement for first half year • Divided into monthly cash budgets
• Analysis of past sales and collection records show • 20% of sales collected in month • 80% in following month
repay outstanding loan
4-28
Pro Forma Balance Sheet
• Represents cumulative changes over time
• Provides projection on anticipated profits over subsequent period
• Important steps
• Establish sales projection • Determine production schedule, associated use of new
Table 4-1 Projected Wheel and Caster Sales
• Assume Goldman Corporation has two primary products: wheels and casters
4-7
Determine Production Schedule and Gross Profit
material, direct labor, and overhead to arrive at gross profit • Compute other expenses • Determine profit by completing actual pro forma statement
4-6
4Байду номын сангаас
Financial Forecasting
Block, Hirt, and Danielsen Foundations of Financial Management
16th edition
Learning Objectives
• Financial forecasting is essential to firm’s strategic growth
• Cost to produce each unit
4-11
Table 4-5 Total Production Costs
4-12
Cost of Goods Sold
• Costs associated with units sold during time period
• Assumptions for illustration • FIFO accounting used • First allocates cost of current sales to beginning inventory, then goods manufactured during period
• Earnings before taxes
• General and administrative expenses, interest expenses subtracted from gross profit
• Aftertax income
• Subtract taxes to determine aftertax income
• Translate this into a cash budget • Assimilate all materials into pro forma balance sheet
4-4
Figure 4-1 Development of Pro Forma Statements
4-5
Pro Forma Income Statement
• Contribution to retained earnings
• Deduct dividends to ascertain the contribution to retained earnings
4-16
Table 4-8 Income Statement
4-17
Cash Budget