how to read a financial report 怎样阅读财务报告

HOWTOREADAFINANCIALREPORTThePurposeofthispresentationistohelpyoubetterunderstandthedataincludedinfinancialreportsandhowtoanalyzeit.Learnmoreaboutcompaniesthatofferemploymentorprovidedinvestmentopportunities.COMPONENTSOFANANNUALREPORTTheLettertoShareholders:Thisgivesabroadoverviewofthecompany’sbusinessandfinancialperformance.TheBusinessReview:Thissummarizesacompany’srecentdevelopments,trendsandobjectives.TheFinancialReview:Thispresentsacompany’sbusinessperformancein$.COMPONENTSOFANANNUALREPORTTheFinancialReview–Management’sDiscussionandAnalysis:Thissectionexplainsallsignificantchangesfromyeartoyearinthefinancialstatements.Italsoincludeschartsandgraphshighlightingtheyeartoyearchanges.–AuditedFinancialStatements:Consistsofthebalancesheet,incomestatement,statementofchangesequity,andcashflow.THEBALANCESHEETThebalancesheetportraysthefinancialpositionofthecompanybyshowingwhatthecompanyownsandwhatitowesatthereportdate.Itisasnapshot,sinceitreportsthecompany’sfinancialpositionataspecificpointintime.TheIncomeStatementTheIncomeStatementcanbethoughtofmorelikeamotionpicture,sinceitreportsonhowacompanyperformedduringtheperiod(s)presentedandshowswhetherthatcompany’soperationshaveresultedinaprofitorloss.TheStatementofChangesinShareholders’EquityThestatementofchangesinshareholders’equityreconcilestheactivityintheequitysectionofthebalancesheetfromperiodtoperiod.Changesinshareholders’equityresultforcompanyprofitsorlosses,dividendsand/orstockissuances.StatementofCashFlowsThestatementofcashflowsreportsonthecompany’scashmovementsduringtheperiod(s)separatingthembyoperating,investingandfinancingactivities.TheFootnotesThefootnotesprovidemoredetailedinformationaboutthefinancialstatements.AModelCompanyCalled“Typical”Toprovideaframeworkforillustration,afictionalpubliccompanywillbeused.Apubliccompanywillbeusedbecauseitisrequiredtoprovidethemostextensiveamountofinformationinitsannualreports.Therequirementsandstandardsforfinancialreportingaresetbybothgovernmentalandnongovernmentalbodies.Thisfictionalcompanywillrepresentatypicalcorporationwiththemostcommonlyusedaccountingandreportingpractices.Thus,themodelcompanywillbecalledTypicalManufacturingCompany,Inc.(“Typical”,forshort.)AModelCompanyCalled“Typical”Beforeexaminingthefinancialstatementindepth,thefollowingpointsshouldbekeptinmind:FinancialstatementincertainspecializedindustrieswouldlooksomewhatdifferentfromthoseofTypical’s.AModelCompanyCalled“Typical”RatherthanpresentingacompletesetoffootnotesspecifictoTypical,wewillseealistingofappropriategenericfootnotedataforwhichareaderoffinancialstatementsshouldlook.Tosimplifymatters,thestatementsshowndonotillustrateeverySECfinancialreportingruleandregulation.AModelCompanyCalled“Typical”Thegoalofthispresentationistoprovidereaderswithabetterunderstandingofthecoreorbasicfinancialstatementsinanannualreport.ThefollowingslidesaretheconsolidatedfinancialstatementsforTypicalManufacturingCompany,Inc.AModelCompanyCalled“Typical”ConsolidatedBalanceSheets,AssetsDecember,31Assets19X919X8CurrentAssets:Cashandcashequivalents$19,500$15,000Marketablesecurities46,30032,000Accountsreceivable-netofallowancefordoubtfulaccountsof$2,375in19X9and#3,000in19X8156,000145,000Inventories,atthelowerofcostormarket180,000185,000Prepaidexpensesandothercurrentassets4,0003,000TotalCurrentAssets405,800380,000ConsolidatedBalanceSheets,Property,PlantandEquipmentProperty,PlantandEquipment:Land30,00030,000Building125,000118,500Machinery200,000171,100Leaseholdimprovements15,00015,000Furniture,fixtures,etc.15,00012,000Totalproperty,plantandequipment385,000346,600Less:accumulateddepreciation125,00097,000NetProperty,PlantandEquipment260,000249,600ConsolidatedBalanceSheets,OtherAssetsOtherAssets:Intangibles(goodwill,patents)-netofaccumulatedamortizationof$300in19X9and$250in19X81,9502,000Investmentsecurities,atcost300---TotalOtherAssets2,2502,000TotalAssets$668,050$631,600ConsolidatedBalanceSheets,LiabilitiesDecember,31LiabilitiesandShareholders'Equity19X919X8Liabilities:CurrentLiabilities:Accountspayable$60,000$57,000Notespayable51,00061,000Accuredexpenses30,00036,000IncometaxesPayable17,00015,000Otherliabilities12,00012,000Currentportionoflong-termdebt6,000---TotalCurrentLiabilities176,000181,000Long-termLiabilities:Deferredincometaxes16,0009,0009.12%debenturespayable2010130,000130,000Otherlong-termdebt---6,000TotalLiabilities322,000326,000ConsolidatedBalanceSheets,Shareholders’EquityShareholder'Equity:Preferredstock,$5.83cumulative,$100parvalue;authorized,issuedandoutstanding:60,000shares6,0006,000Commonstock,$5.00parvalue,authorized:20,000shares;issuedandoutstanding:19X9-15,000,000shares,19X8-14,500,.000shares75,00072,500Additionalpaid-incapital20,00013,500Retainedearnings249,000219,600Foreigncurrencytranslationadjustments(netoftaxes)1,000(1,000)Unrealizedgainonavailable-for-salesecurities(netoftaxes)50---Less:Treasurystockatcost(19X9and19X8-1,000shares)(5,000)(5,000)TotalShareholders'Equity346,050305,600TotalLiabilitiesandShareholders'Equity$668,050$631,600Consolidat