Documente Academic
Documente Profesional
Documente Cultură
Finance
by
Robert Parrino, Ph.D. & David S. Kidwell, Ph.D.
Created by
Babu G. Baradwaj, Ph.D
Lawrence L. Licon, Ph.D
CHAPTER 3
Financial Statements,
Cash Flows, and Taxes
Quick Links
Financial Statements and Accounting Principles
The Balance Sheet
Market Value vs. Book Value
The Income Statement
Statement of Retained Earnings
Cash Flows
Federal Income Tax
Exhibits
Chapter 3 Financial Statements, Cash Flows, and Taxes
sections:
financial summary related to the
past years performance
information about the company, its
products, and its activities
audited financial statements
Chapter 3 Financial Statements, Cash Flows, and Taxes
Copyright 2008 John Wiley & Sons
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including historical
financial data
Go to Exhibit 3.1
Chapter 3 Financial Statements, Cash Flows, and Taxes
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its shareholders.
paid
listed last
Will be paid with whatever remains after
paying all other suppliers of funds
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Common Equity:
preferred stock
Has features that make it a
combination of a fixed income security
and an equity security.
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historical costs
Balance sheet does not reflect current
market value of the assets - only their
acquired costs
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values of assets
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Go to Exhibit 3.2
Copyright 2008 John Wiley & Sons
an asset:
Straight line method
Accelerated depreciation method
Firms allowed to use one for internal purposes
and another for tax purposes
Chapter 3 Financial Statements, Cash Flows, and Taxes
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amortization (EBITDA)
earnings generated from operations prior to
payment of expenses not directly connected
to production of products
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Go to Exhibit 3.3
Chapter 3 Financial Statements, Cash Flows, and Taxes
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Cash Flows
Net Cash Flow versus Net Income
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Cash Flows
Cash Flow Statement
Go to Exhibit 3.4
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Cash Flows
Operating Activities
Go to Exhibit 3.5
Chapter 3 Financial Statements, Cash Flows, and Taxes
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Cash Flows
Investing Activities
(bonds, stocks)
Making and collecting loans
Selling and settling insurance contracts
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Cash Flows
Financing activities
Cash Inflows- when a firm issues debt or equity
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Go to Exhibit 3.6
Chapter 3 Financial Statements, Cash Flows, and Taxes
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