财务报表分析相关知识概述英文版1

1.NCS.NEj・NEExercise7-730minutesNet Cashfrom CashIncomeoperations position

1.NE NE+

2.NE NE+.

3..+++4a.-NE NE4b.NE1+⑵2+,4c.-_|_2+⑵

5.NE++

6.-+long-run-+long-run-.7_5+.•一,8,+NE NE

9.+⑶+⑷+⑷

10.NE++

11.+++

12.NE NE+,

13.NE,NE+Deferred taxaccounting.2Depends onwhether taxsavings arerealized in cash.3If profitable.

4.If accountsreceivable collected.5Depends onwhether interestis paidor accrued.Further explanationslisted byproposal number:

1.Substituting paymentin stockfor paymentincashfor itsdividends will not affect income orCFO but willincrease cashposition.

2.In theshort run,postponement ofcapital expenditureswill savecash buthave noeffect onincome orCFO.In thelong term,both incomeand CFOmay sufferdue tolower operatingefficiency.Exercise7-7—continued

3.Cash notspent onrepair andmaintenance will increase allthree measures.However,the skimpingon necessarydiscretionarycosts willadversely impactfuture operatingefficiency and,hence,profitability.

4.Managers advocatingan increase in depreciationmay havespoken in the mistakenbelief thatdepreciationis asource of cash andthat consequentlyincreasing itwould result inahigher cashinflow.In fact,thelevel ofdepreciation expensehas noeffect on cash flow-the sameamount ofdepreciation deductedin arrivingatnet incomeis addedback inarriving atCFO.On theother hand,increasing depreciationfor taxpurposeswill inall casesresult inat leasta short-term savings.

5.Quicker collectionswillnotaffectincomebut will increase CFObecause oflower accountsreceivable.Cashwill alsoincrease by the speedierconversion ofreceivables intocash.In thelonger runthis stiffeningin the termsofsaleto customersmay resultin saleslost tocompetition.

6.Payments stretched-out willlower incomebecause oflost discountsbut doespositively affectCFO byincreasingthe levelof accountspayable.Cash conservationwill resultinahigher cashposition.Relationswith suppliersmay be affected adversely.Note:Long-term cashoutflow will be higherbecause of the lostdiscount.

7.Borrowing will resultininterest coststhat willdecrease incomeand CFO.Cash positionwill increase.

8.This changein depreciationmethod willincrease incomein theearly stagesof anassets life.The oppositemayhold truein thelater stagesof theasset,s life.

9.In theshort term,higher salesto dealerswillresultin higherprofits assumingwe sellabove costsand,if theypay promptly,both CFOand cashwillincrease.However,unless thedealers areable tosell toconsumers,such saleswillbemade atthe expenseof futuresales.

10.This willlead toless incomefrom pensionassets inthe futurewhich couldcause futurepension expensetoincrease.

11.The costof fundinginventory willbe reducedinthefuture.In thecurrent periodnetincomemay alsobeincreased bya LIFOliquidation fromreduced inventorylevels.

12.The current period declineinthevalue of the tradingsecurities hasbeen reflected in current period income,as hasthe previousgain.Although thesale willincrease cash,it willhave noeffect oncurrent periodincome.If thecurrentperioddecline isdeemed tobe temporary,the companyis sellinga potentiallyprofitablesecurity fora short-term cashgain.

13.Reissuance oftreasury shareswillincreasecash,butwillhave noeffect oncurrentperiodincome asanygain or loss isreflectedinadditional paidin capital,not income.If thestock priceis consideredtobe temporarilydepressed,the companyis foregoinga futuresale ata greatermarket priceand is,thus,suffering currentdilution ofshareholder value.Exercise7-960minutesa.Cash CollectionsComputation:Accounts ReceivableNetBeg[a]

564.1Sales

[13]

6145.4Cash collections[b]

6205.8End

[33]

624.5Notes:[a]Balance at7/29/Year10$

624.5

[33]Less:increaseinYear

1060.4

[61]$

564.1[b]This amountis overstatedbytheprovision fordoubtful accountsexpense thatis includedin anotherexpensecategory.b.Cash DividendsPaid Computation:Dividends Payable

32.3Beg

[43]Dividend paid

[77]

137.

5142.2Dividend declared[a]

[89]

37.0End

[43]Note[a]:Item

[89]represents dividendsdeclared,not dividendspaid seealso Item[

771.c.Cost ofGoods andServices ProducedComputation:InventoriesBeg

[34]

819.

84095.5Cost ofproducts sold

[14]Amount tobalance

3982.4End[

341706.7The entryfor theincome taxprovision forYear11is:d.Income taxexpense

23.4Notes:1The entryincreases currentliabilities by$

12.1since deferredincometaxcurrent iscredited bythisamount.It alsoincreases currentliabilities by$

230.4[124A],theamountof incometaxes payable.2The[a]is thedifference inthe balanceofthenoncurrent deferredincometaxitem

[176]=$

258.5-$

235.1=$

23.

4.3Also,$

23.4+$

12.1=$

35.5,which istotal deferredtax

[59]or[127A]Depreciation expensehas noeffect oncash from operations.The credit,when recordinge.the depreciationexpense,goes toaccumulated depreciation,a noncashaccount.These provisionsare addedback becausethey affectonly noncashaccounts,the chargetof.earnings mustbe removedin convertingit to the cashbasis.The Effectof exchangerate changesoncash“represents translationadjustmentsg.differences arisingfrom thetranslation ofcash fromforeign currenciestotheU.S.dollar.Any gainorlossis reportedunder“other,net”-Item

[60].h.Free cash flows=i.Cash flowfrom operations-Cash usedfor capitaladditions-Dividends paidYear11:$

805.2-$

361.1-$

137.5=$

306.6Year10:$

448.4-$

387.6-$

124.3=$

63.5Year9:$

357.3-$

284.1-$

86.7=$

13.5j.Start-up companiesusually havegreater capitaladdition requirementsand lowercash inflowsfrom operations.Also,start-ups rarelypay cashdividends.Free cash flow earnedby start-up companiesis usuallyused tofundthe growthofthecompany,especially ifsuccessful.k.During thelaunch ofa newproduct line,the statementofcashflows can beaffectedin severalways.First,cashflowfromoperationsis lowerbecause substantialadvertising andpromotion isrequired andsales growthhasnot yetbeen maximized.Second,substantial capitaladditions areusually necessaryto providetheinfrastructure forthe newproduct line.Third,cashflowfrom financingcanbeaffected iffinancing isobtainedto launchthis newproduct line.。