chap007CashFlowAnalysis(财务报表分析,台湾中兴大学)

7CHAPTERCashFlowAnalysisMcGraw-Hill/Irwin©2004TheMcGraw-HillCompanies,Inc.,AllRightsReserved.StatementofCashFlowsRelevanceofCashFlowsCashDefined--referstocashandcashequivalents.Cashequivalentsareshort-term,highlyliquidinvestmentsthatare(1)readilyconvertibletoknownamountsofcash,and(2)nearmaturity(typicallywithin3months)withlimitedriskofpricechangesduetointerestrateshifts.StatementofCashFlowsRelevanceofCashFlowsCashisthebeginningandtheendofacompany’soperatingcycle.Netcashflowistheendmeasureofprofitability.Cashrepaysloans,replacesequipment,expandsfacilities,andpaysdividends.Analyzingcashinflowsandoutflowshelpsassessliquidity,solvency,andfinancialflexibility.Liquidityisthenearnesstocashofassetsandliabilities.Solvencyistheabilitytopayliabilitieswhentheymature.Financialflexibilityistheabilitytoreacttoopportunitiesandadversities.StatementofCashFlowsRelevanceofCashFlowsStatementofcashflows(SCF)helpsaddressquestionssuchas:Howmuchcashisgeneratedfromorusedinoperations?Whatexpendituresaremadewithcashfromoperations?Howaredividendspaidwhenconfrontinganoperatingloss?Whatisthesourceofcashfordebtpayments?Whatisthesourceofcashforredeemingpreferredstock?Howistheincreaseininvestmentsfinanced?Whatisthesourceofcashfornewplantassets?Whyiscashlowerwhenincomeincreased?Whatistheuseofcashfromnewfinancing?StatementofCashFlowsCashFlowRelationsIllustration:Considertwoconsecutiveyears’balancesheetsdividedinto(1)cash,and(2)allotherbalancesheetaccounts:AccountsYear1Year2Cashandcashequivalents$3,000$5,000Noncashaccounts:Noncashcurrentassets$(9,000)$(11,000)Noncurrentassets(6,000)(8,000)Currentliabilities8,00010,000Long-termliabilities3,0005,000Equityaccounts7,0009,000Netnoncashbalance$3,000$5,000Note:ChangeincashfromYear1toYear2(increaseof$2,000)=Changeinnoncashbalancesheetaccounts($2,000increase)fromYear1toYear2Interrelationsbetweencashandnoncashbalancesheetaccountscanbegeneralized:Netchangesincashareexplainedbynetchangesinnoncashbalancesheetaccounts.Changeswithinoramongnoncashbalancesheetaccountsdonotaffectcash.Yet,thereisdisclosureofallsignificantfinancingandinvestingactivitiesinaseparatescheduleofnoncashinvestingandfinancingactivities.Changeswithinthecomponentsofcasharenotreported.StatementofCashFlowsCashFlowRelationsStatementofCashFlowsReportingbyActivitiesStatementofcashflowsreportsreceiptsandpaymentsbyoperating,financing,andinvestingactivitiesOperatingactivitiesaretheearning-relatedactivitiesofacompany.Investingactivitiesaremeansofacquiringanddisposingofnoncashassets.Financingactivitiesaremeansofcontributing,withdrawing,andservicingfundstosupportbusinessactivities.StatementofCashFlowsNetCashFlowsfromOperationsIndirectMethod-Netincomeisadjustedfornon-cashincome(expense)itemsandaccrualstoyieldcashflowfromoperationsDirectMethod-Eachincomeitemisadjustedforitsrelatedaccruals*Bothmethodsyieldidenticalresults-onlythepresentationformatdiffers.StatementofCashFlowsIndirectMethodNetCashFlowsfromOperationsNetIncome+Depreciation+/-Gains(losses)onsalesofassets+/-Cashgenerated(used)bycurrentassets&liabilitiesNetcashflowsfromoperatingactivitiesStatementofCashFlowsDepreciationAdd-BackSales-Expenses-DepreciationandamortizationexpenseNetIncome+Depreciationexpense+/-Gains(losses)onsalesofassets+/-Cashgenerated(used)bycurrentassetsandliabilitiesNetcashflowsfromoperatingactivitiesAddBackStatementofCashFlowsIncomevs.CashFlowsExampleConsidera$100saleonaccount(1)Inperiodofsale,netincomeisincreasedby$100butnocashhasbeengenerated.NetIncome100Depreciationandamortizationexpense0Gains(losses)onsaleofassets0Changeinaccountsreceivable(100)NetCashflowfromoperations0Inperiodofcollectionnoincomeisrecorded.NetIncome0Depreciationandamortizationexpense0Gains(losses)onsaleofassets0Changeinaccountsreceivable100NetCashflowfromoperations100StatementofCashFlowsConstructingtheStatementIncreaseDecreaseAssets(Outflow)InflowLiabilitiesInflow(Outflow)StatementofCashFlowsConstructingtheStatementYear2Year1Cash75,000$51,000$24,000$Receivables48,00039,0009,000Inventory54,00060,0006,000Prepaidexpenses6,0009,0003,000Plantassets440,000350,00090,000Accumlateddepreciation(145,000)(125,000)20,000Intangibles51,00058,0007,000529,000$442,000$Accountspayable51,000$56,000$5,000Accruedexpenses18,00014,0004,000Long-termnotepayable30,000-30,000Mortgagepayable-150,000150,000Preferredstock175,000-175,000Commonstock200,000200,000-Retainedearnings55,00022,00033,000529,000$442,000$Sales660,000Costofsales(363,000)Grossprofit297,000Operatingexpenses(183,000)Depreciation&amortization(35,000)Gainonsaleofasset5,000Netincome84,000$GouldCorporationIncomeStatementFortheYearEndedDecember31,Year2AbsoluteValueofChangeGouldCorporationComparativeBalanceSheetAsofDecember31,Year21.Thecompanypurchasedatruckduringtheyearatacostof$30,000thatwasfinancedinfullbythemanufacturer.2.Atruckwithacostof$10,000andanetbookvalueof$2,000wassoldduringtheyearfor$7,000.Therewerenoothersalesofdepreciableassets.3.DividendspaidduringYear2are$51,000StatementofCashFlowsStepsinConstructingtheStatement(1)StartwithNetIncome(2)Adjus