1、Chapter2McGraw-Hill/IrwinCopyright 2006 by The McGraw-Hill Companies,Inc.All rights reserved.Financial Statements,Taxes,and Cash Flows2-1Key Concepts and Skills Know the difference between book value and market value Know the difference between accounting income and cash flow Know the difference bet
2、ween average and marginal tax rates Know how to determine a firms cash flow from its financial statements2-2Chapter Outline The Balance Sheet The Income Statement Taxes Cash Flow2-3財務報表的意義 財務報表是公司內部會計制度運作所產生的結果。1檢查交易憑證並分析交易性質產生財務報表日記簿分錄過入總分類帳編制結帳後試算表結帳及調整分錄編制試算表及完成工作底稿2345672-4Balance Sheet The bala
3、nce sheet is a snapshot of the firms assets and liabilities at a given point in time Assets are listed in order of liquidity Ease of conversion to cash Without significant loss of value Balance Sheet Identity Assets=Liabilities+Stockholders Equity2-5The Balance Sheet-Figure 2.12-6Net Working Capital
4、 and Liquidity Net Working Capital Current Assets Current Liabilities Positive when the cash that will be received over the next 12 months exceeds the cash that will be paid out Usually positive in a healthy firm Liquidity Ability to convert to cash quickly without a significant loss in value Liquid
5、 firms are less likely to experience financial distress But liquid assets earn a lower return Trade-off to find balance between liquid and illiquid assets2-7US Corporation Balance Sheet Table 2.12-8Market Vs.Book Value The balance sheet provides the book value of the assets,liabilities and equity.Ma
6、rket value is the price at which the assets,liabilities or equity can actually be bought or sold.Market value and book value are often very different.Why?Which is more important to the decision-making process?2-9Example 2.2 Klingon CorporationKLINGON CORPORATIONBalance SheetsMarket Value versus Book
7、 ValueBookMarketBookMarketAssetsLiabilities and Shareholders EquityNWC$400$600 LTD$500$500NFA 700 1,000 SE6001,1001,1001,6001,1001,6002-10Income Statement The income statement is more like a video of the firms operations for a specified period of time.You generally report revenues first and then ded
8、uct any expenses for the period Matching principle GAAP say to show revenue when it accrues and match the expenses required to generate the revenue2-11US Corporation Income Statement Table 2.22-12Work the Web Example Publicly traded companies must file regular reports with the Securities and Exchang
9、e Commission These reports are usually filed electronically and can be searched at the SEC public site called EDGAR Click on the web surfer,pick a company and see what you can find!真像王證券專業資料庫 台積電-民國91及90年度財務報告2-13Taxes The one thing we can rely on with taxes is that they are always changing Marginal
10、 vs.average tax rates Marginal the percentage paid on the next dollar earned Average the tax bill/taxable income Other taxes2-14Example:Marginal Vs.Average Rates Suppose your firm earns$4 million in taxable income.What is the firms tax liability?What is the average tax rate?What is the marginal tax
11、rate?If you are considering a project that will increase the firms taxable income by$1 million,what tax rate should you use in your analysis?2-15台灣之營利事業所得稅 營利事業全年課稅所得額在5萬元以下者，免徵營利事業所得稅；營利事業全年課稅所得額在十萬元以下者，就其全部課稅所得額課徵15%。但其應納稅額不得超過營利事業所得額超過5萬元以上部分之半數；超過10萬元以上者，就其超過額課徵課徵25%。財稅網2-16當營所稅遇到綜所稅-兩稅合一 民國87年1
12、月1日，國內租稅制度上有了一個重大的改革，就是實施兩稅合一，將營利事業所得稅與綜合所得稅加以整合，成為一個新的制度 昔日稅制的探討昔日稅制的探討 兩稅合一的重要內容兩稅合一的重要內容2-17The Concept of Cash Flow Cash flow is one of the most important pieces of information that a financial manager can derive from financial statements The statement of cash flows does not provide us with the
13、same information that we are looking at here We will look at how cash is generated from utilizing assets and how it is paid to those that finance the purchase of the assets2-18Cash Flow From Assets Cash Flow From Assets(CFFA)=Cash Flow to Creditors+Cash Flow to Stockholders Cash Flow From Assets=Ope
14、rating Cash Flow Net Capital Spending Changes in NWC2-19Example:US Corporation Part I OCF(I/S)=EBIT+depreciation taxes=$547 NCS(B/S and I/S)=ending net fixed assets beginning net fixed assets+depreciation=$130 Changes in NWC(B/S)=ending NWC beginning NWC=$330 CFFA=547 130 330=$872-20Example:US Corpo
15、ration Part II CF to Creditors(B/S and I/S)=interest paid net new borrowing=$24 CF to Stockholders(B/S and I/S)=dividends paid net new equity raised=$63 CFFA=24+63=$872-21Cash Flow Summary Table 2.52-22Example:Balance Sheet and Income Statement Information Current Accounts 2004:CA=3625;CL=1787 2003:
16、CA=3596;CL=2140 Fixed Assets and Depreciation 2004:NFA=2194;2003:NFA=2261 Depreciation Expense=500 Long-term Debt and Equity 2004:LTD=538;Common stock&APIC=462 2003:LTD=581;Common stock&APIC=372 Income Statement EBIT=1014;Taxes=368 Interest Expense=93;Dividends=2852-23Example:Cash Flows OCF=1014+500
17、 368=1146 NCS=2194 2261+500=433 Changes in NWC=(3625 1787)(3596 2140)=382 CFFA=1146 433 382=331 CF to Creditors=93 (538 581)=136 CF to Stockholders=285 (462 372)=195 CFFA=136+195=331 The CF identity holds.2-24Quick Quiz What is the difference between book value and market value?Which should we use f
18、or decision making purposes?What is the difference between accounting income and cash flow?Which do we need to use when making decisions?What is the difference between average and marginal tax rates?Which should we use when making financial decisions?How do we determine a firms cash flows?What are the equations and where do we find the information?Chapter2McGraw-Hill/IrwinCopyright 2006 by The McGraw-Hill Companies,Inc.All rights reserved.End of Chapter
