公司理财(第二章)

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Fixed Assets • Tangible Assets • Intangible Assets ___________________
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Long-term Liabilities
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Shareholders’ Equity ____________________ Total Liabilities & Shareholders’ Equity
Equation: Total Assets = Total Liabilities + Shareholders’ Equity Net Working Capital = Current Assets – Current Liab.
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The Balance Sheet
Current Assets • Cash & Securities • Receivables • Inventories Current Liabilities • Payables • Short-term Debt
In the balance sheet below, what was the value of net working capital in 2008? 2009?
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Common-Size Balance Sheet
All balance sheet items are expressed as a percentage of total assets.
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Fixed Assets
Tangible Assets Intangible Assets Goodwill
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Fixed Assets: Example
Which of the following represent tangible assets? Intangible assets?
In the income statement below, what was the value of Home Depot’s EBIT in 2009?
Common Size Income Statement
(right column)
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The Income Statement
Basic principles: All revenues realized vs all costs related Different treatment for current expenses and capital expenses EBIT = total Revenues － costs －depreciation Net Profit = revenue – expenses
Book Value
• Value of assets or liabilities according to the balance sheet. • Values recorded at their historical cost adjusted for depreciation
Market Value
Why is this useful?
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Common-Size Balance Sheet: Example
Note the changes from 2008 to 2009.
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Book Values vs. Market Values
GAAP (Generally Accepted Accounting Principles)
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Total Assets
Assets
Assets represent the uses of a firm’s funds
i.e. Assets show what the firm “owns”
• Liquid Assets can be converted easily into cash • Current vs. Fixed Assets
Free Cash Flow
Free Cash Flow is cash available for distribution to investors after the firm pays for new investments or additions to working capital. Free cash flow = (EBIT – taxes + dep.) - change in net working capital - cap. expenditures
• Bond debt that matures in 3 years • A bank loan that is due in 24 months • An obligation to pay a supplier within 6 months
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Net Working Capital: Example
• • • • • • Property Production Facilities Patents Production Equipment Trademarks Copyrights
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Liabilities
Liabilities represent the sources of a firm’s funding. (i.e. Liabilities represent what a firm “owes.”)
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The Balance Sheet
Definition: The Balance Sheet is a financial statement that shows the firm’s assets and liabilities at a particular time.
Why is it useful?
The Statement of Cash Flows
The Statement of Cash Flows shows the firm’s cash receipts and cash payments over time.
Why is it useful?
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The Statement of Cash Flows
Current vs. Long-Term Liabilities
Current Assets – Current Liabilities = Net Working Capital
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Liabilities: Example
Which of the following is a current liability?
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Profits vs. Cash Flow
Differences between profits & cash flow: Depreciation (non-cash item) Accrual accounting vs. cash accounting Different treatment for capital expenses.
• The value of assets or liabilities to be resold in a market
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The Income Statement
Income Statement: a financial statement that shows the revenues, expenses, and net income of a firm over a period of time.
Common-size Income Statement
All items on a common-size income statement are expressed as a percentage of revenues.
Why is this useful?
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Income Statement: Example
Why is this useful?
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The Income Statement
Sales revenue Less: cost of sales Gross profits Less: Operating expenses Operating profits Less: Financing expense Net profits before taxes Less: Taxes (15%) Net profits after taxes $135,000 108,000 27,000 13,500 13,500 1,350 12,150 1,823 $10,327
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Current Assets: Examples
Which of the following assets is typically considered most liquid? Least liquid? • Marketable securities • Accounts receivable • Inventories Which of the following is a current asset? • Property that a firm owns • A firm’s production equipment • Unsold inventories
Structure:
Cash flow from operations Cash flow from investments
wk.baidu.com
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Cash flow from financing
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Change in cash balance
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Cash Flow: Example
Net income for your firm was $10,000 last year. The depreciation expense was $2,500; accounts receivable increased $1,250; accounts payable increased $800; and inventories increased by $2,000. What was the total cash flow from operations for the period?
Net income: Depreciation: Accounts Receivable: Accounts Payable: Inventories: 10,000 2,500 (1,250) 800 (2,000)
Cash flow from operations:
10,050
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The Statement of Cash Flows
McGraw-Hill/Irwin
Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
Accounting and Finance
Understanding financial accounting is essential to understanding corporate finance. Key Components of the Financials: The Balance Sheet The Income Statement The Statement of Cash Flows
Key points: Net income is the starting point. Non-cash items are excluded, depreciation should be added back. Timing of the cash flows is relevant. Current assets↓(↑) → cash inflow (outflow) Current liabilities↑(↓)→cash inflow (outflow) NCF = cash inflows – cash outflows