首页 【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑)

【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑)

举报
开通vip

【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑)【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑) Balance sheet Income statement Statement of cash flows Accounting income versus cash flow MVA and EVA Personal taxes Corporate taxes Balance Sheets: Assets 2001 2000 Cash 7,282 9,000 Short-term inv. 0 48,600...

【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑)
【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑) Balance sheet Income statement Statement of cash flows Accounting income versus cash flow MVA and EVA Personal taxes Corporate taxes Balance Sheets: Assets 2001 2000 Cash 7,282 9,000 Short-term inv. 0 48,600 AR 632,160 351,200 Inventories 1,287,360 715,200 Total CA 1,926,802 1,124,000 Gross FA 1,202,950 491,000 Less: Depr. 263,160 146,200 Net FA 939,790 344,800 Total assets 2,866,592 1,468,800 Statement of Cash Flows: 2001 OPERATING ACTIVITIES Net Income (519,936) Adjustments: Depreciation 116,960 Change in AR (280,960) Change in inventories (572,160) Change in AP 378,560 Change in accruals 353,600 Net cash provided by ops. L-T INVESTING ACTIVITIES Investments in fixed assets (711,950) FINANCING ACTIVITIES Change in s-t investments 48,600 Change in notes payable 520,000 Change in long-term debt 676,568 Payment of cash dividends (11,000) Net cash from financing 1,234,168 Sum: net change in cash (1,718) Plus: cash at beginning of year 9,000 Cash at end of year 7,282 Net cash from operations = -$523,936, mainly because of negative net income. The firm borrowed $1,185,568 and sold $48,600 in short-term investments to meet its cash requirements. Even after borrowing, the cash account fell by $1,718. What effect did the expansion have on net operating working capital (NOWC)? NOWC01 = ($7,282 + $632,160 + $1,287,360) - ($524,160 + $489,600) = $913,042. NOWC00 = $793,800. What effect did the expansion have on capital used in operations? = NOWC + Net fixed assets. = $913,042 + $939,790 = $1,852,832. = $1,138,600. Did the expansion create additional net operating profit after taxes (NOPAT)? NOPAT = EBIT(1 - Tax rate) NOPAT01 = -$690,560(1 - 0.4) = -$690,560(0.6) = -$414,336. NOPAT00 = $125,460. What is your initial assessment of the expansion’s effect on operations? 2001 2000 Sales $5,834,400 $3,432,000 NOPAT ($414,336) $125,460 NOWC $913,042 $793,800 Operating capital $1,852,832 $1,138,600 What was the free cash flow (FCF) for 2001? FCF = NOPAT - Net capital investment = -$414,336 - ($1,852,832 - $1,138,600) = -$414,336 - $714,232 = -$1,128,568. How do you suppose investors reacted? Probably not. A/P increased 260% over the past year, while sales increased by only 70%. If this continues, suppliers may cut off trade credit. No, the negative NOPAT shows that the company is spending more on it’s operations than it is taking in. Short-run: Inventory and fixed assets ? to meet increased sales. A/R ? , Cash ?. Company may have to seek additional financing. Long-run: Collections increase and the company’s cash position would improve. The expansion was financed primarily with external capital. The company issued long-term debt which reduced its financial strength and flexibility. Would external capital have been required if they had broken even in 2001 (Net income = 0)? Yes, the company would still have to finance its increase in assets. What happens if fixed assets are depreciated over 7 years (as opposed to the current 10 years)? No effect on physical assets. Fixed assets on balance sheet would decline. Net income would decline. Tax payments would decline. Cash position would improve. Other policies that can affect financial statements Inventory valuation methods. Capitalization of R&D expenses. Policies for funding the company’s retirement plan. Does the company’s positive stock price ($2.25), in the face of large losses, suggest that investors are irrational? No, it means that investors expect things to get better in the future. Why did the stock price fall after the dividend was cut? Management was “signaling” that the firm’s operations were in trouble. The dividend cut lowered investors’ expectations for future cash flows, which caused the stock price to decline. What were some other sources of financing used in 2001? Selling financial assets: Short term investments decreased by $48,600. Bank loans: Notes payable increased by $520,000. Credit from suppliers: A/P increased by $378,560. Employees: Accruals increased by $353,600. What is the effect of the $346,624 tax credit received in 2001. This suggests the company paid at least $346,624 in taxes during the past 2 years. If the payments over the past 2 years were less than $346,624 the firm would have had to carry forward the amount of its loss that was not carried back. If the firm did not receive a full refund its cash position would be even worse. Assume your salary is $45,000, and you received $3,000 in dividends. You are single, so your personal exemption is $2,800 and your itemized deductions are $4,550. On the basis of the information above and the 2000 tax year tax rate schedule, what is your tax liability? Tax Liability: TL = $3,937.50 + 0.28($14,400) = $7,969.50. Marginal Tax Rate = 28%. Average Tax Rate: Tax rate = = 19.6%. Assume a corporation has $100,000 of taxable income from operations, $5,000 of interest income, and $10,000 of dividend income. What is its tax
本文档为【【基础金融英文版】FinancialStatements,CashFlow,andTaxes(可编辑)】,请使用软件OFFICE或WPS软件打开。作品中的文字与图均可以修改和编辑, 图片更改请在作品中右键图片并更换,文字修改请直接点击文字进行修改,也可以新增和删除文档中的内容。
该文档来自用户分享,如有侵权行为请发邮件ishare@vip.sina.com联系网站客服,我们会及时删除。
[版权声明] 本站所有资料为用户分享产生,若发现您的权利被侵害,请联系客服邮件isharekefu@iask.cn,我们尽快处理。
本作品所展示的图片、画像、字体、音乐的版权可能需版权方额外授权,请谨慎使用。
网站提供的党政主题相关内容(国旗、国徽、党徽..)目的在于配合国家政策宣传,仅限个人学习分享使用,禁止用于任何广告和商用目的。
下载需要: 免费 已有0 人下载
最新资料
资料动态
专题动态
is_005190
暂无简介~
格式:doc
大小:22KB
软件:Word
页数:4
分类:其他高等教育
上传时间:2017-09-21
浏览量:23