财务基础知识4

1CashFlowStatementandFinancialStatementAnalysisLearningObjectives:DevelopanabilitytoprepareastatementofcashflowsusingDirectMethodandDevelopskillstoanalyzeprofitabilityandriskDiscussionSection#4FinancialReporting-E202LopoMartinezOperationActivitiesCashFlowfromOperationsCashpaymentsforoperationsCashreceiptsfromoperationsNetincomeAdjustmentsfornon-cashrevenuesandexpensesAdjustmentsforreceivables,inventories,payables,othercurrentassets/liabilitiesCashflowfromoperationsLessPlus/LessPlus/LessEqualsEqualsDirectMethodIndirectMethodCanbecomputedtwoways:Obtainedfromcashreceiptsjournal.Obtainedfromaccrualsalesinformation.CashreceivedfromcustomersDirectMethodCashReceivedfromCustomers=Sales{-increaseA/R+decreaseA/R{+increaseUn.Rev.-decreaseUn.Rev=Sales-DA/R+DUn.RevenueCashreceivedfromcustomersSotocomputeCashReceivedfromCustomers:Step1Step2Purchases=COGS{+Increaseininventory-DecreaseininventoryCashpaidformerchandise=Purchases{-IncreaseinA/P+DecreaseinA/PDirectMethodCashPaidforMerchandise=COGS+DINV-DA/PCashpaidformerchandiseSotocomputeCashPaidforMerchandise:Thecashpaidforwagesandotheroperatingexpensesisaffectedby(1)whethertheexpensewasaccrued(W/P,RentsPayable),and(2)whethertheexpensewasprepaid(PrepaidWages,PrepaidRents){{Cashpaidforwagesandotheroperatingexpenses=Wagesandotheroperatingexpenses-Increaseinaccruedliabilities+Decreaseinaccruedliabilities+Increaseinprepaidexpenses-DecreaseinprepaidexpensesDirectMethodWagesandOperatingExpenses=Wagesandotheroperatingexpenses-DW/P+DPr.WagesCashpaidforWagesandOtherOperatingExpenses-DRentPayable-DInsur.Payable+DPr.Rent+DPr.Insur.SotocomputeCashPaidtoEmployeesandotherOperatingExpenses:Cashpaidforinterest=InterestExpense+DecreaseinInterestpayable-IncreaseinInterestpayable{Cashpaidfortaxes=TaxExpense+Decreaseintaxespayable-IncreaseintaxespayableDirectMethodCashPaidforInterestandTaxes{=InterestExp.-DInt.PayableCashpaidforinterestCashpaidfortaxesTaxExp.=-DTax.PayableSales-DA/R+DUn.RevenueCashreceivedfromcustomersCOGS+DINV-DA/PCashpaidformerchandiseWagesandotheroperatingexpenses-DW/P+DPr.WagesCashpaidforWagesandOtherOperatingExpenses-DRentPayable-DInsur.Payable+DPr.Rent+DPr.Insur.InterestExp.-DInt.PayableCashpaidforinterestCashpaidfortaxesTaxExp.-DTax.PayableCashfromOperations(DirectApproach)+----Sales-DA/R+DUn.Revenue-COGS-DINV+DA/P-W.AndotherOE+DW/P-DPr.Wages+DRentPayable+DInsur.Payable-DPr.Rent-DPr.Insur.-InterestExp.+DInt.Payable-TaxExp.+DTax.PayableCashfromOperations(IndirectMethod)NetIncome+Deprec+Amort+Losses-Gains======-DNoncashWorkingCapital(WK)=DirectandIndirectMethodJAN1DEC31BalanceSheetChangeCash52,000$58,000$Accountsreceivable93,000106,000$13,000Inventories151,000162,00011,000Land30,00030,000BuildingandEquip.790,000830,00040,000Acc.Depreciation(460,000)(504,000)(44,000)TotalAssets656,000$682,000$LiabilitiesandOEAccountspayable136,000$141,000$5,000InterestPayable10,0008,000(2,000)MortgagePayable120,000109,000(11,000)CommonStocks250,000250,000RetainedEarning140,000174,00034,000TotalLiabilitiesandOE656,000$682,000$DWK=DCurrentAssets-DCurrentLiabilities21,000AssetsHALECOMPANYComparativeBalanceSheetsSalesRevenues$1,200,000ExpensesCostofGoodsSold788,000WagesandSalaries280,000Depreciation54,000Interest12,000IncomeTaxes22,000Total1,156,000NetIncome$44,000(10,000)AdditiontoRetainedEarnings34,000RetainedEarnings,Jan.1140,000$174,000DividendsonCommonStockRetainedEarnings,Dec.31HALECOMPANYIncomeStatementandRetainedEarningsFortheCurrentYearDuringthecurrentyearafirmsoldfor$5,000equipmentcosting$15,000with$10,000ofAcc.Depreciation.Didthefirmpurchaseanyequipment?PurchaseofEquip=End.Equip-(Beg.Equip–SaleofEquip)830,000–(790,000–15,000)=$55,000P-4.27NetIncome$44,000AdditionsDepreciationExp.54,000IncreaseinA/P5,000SubtractionsIncreaseinA/R(13,000)IncreaseinInv.(11,000)DecreaseinInt.Payable(2,000)CashFlowfromOperations$77,000SaleofEquipment$5,000AcquisitionofEquip.(55,000)CashFlowfromInvesting(50,000)Dividends(10,000)RetirementofMortg/P(11,000)CashFlowfromFinancing(21,000)NetChangeinCash6,000Cash,January152,000Cash,December31$58,000HALECOMPANYStatementofCashFlowsOperations:Investing:Financing:FortheCurrentYearBalanceSheetChangeCashAccountsreceivable$13,000Inventories11,000LandBuildingandEquip.40,000Acc.Depreciation(44,000)TotalAssetsLiabilitiesandOEAccountspayable5,000InterestPayable(2,000)MortgagePayable(11,000)CommonStocksRetainedEarning34,000TotalLiabilitiesandOEDWK21,000AssetsHALECOMPANYComparativeBalanceSheetsSalesRevenues$1,200,000ExpensesCostofGoodsSold788,000WagesandSalaries280,000Depreciation54,000Interest12,000IncomeTaxes22,000Total1,156,000NetIncome$44,000(10,000)AdditiontoRetainedEarnings34,000RetainedEarnings,Jan.1140,000$174,000DividendsonCommonStockRetainedEarnings,Dec.31HALECOMPANYIncomeStatementandRetainedEarningsFortheCurrentYearP-4.27a)10Sales-DA/R+DUn.RevenueCashreceivedfromcustomers=1,200,000-(13,000)1,187,000COGS+DINV-DA/PCashpaidtoSuppliers=794,000788,000+(11,000)-(5,000)InterestExp.-DInt.PayableCashpaidforinterest=14,00012,000-(-2,000)Wagesexpenses-DW/P+DPr.WagesCashp