Financial Statements, Taxes and Cash Flows

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					Financial Statements, Taxes and
Cash Flows
   Financial Statements
     Assets
        Building                                          $190,000
        Accumulated Depreciation                           - 70,000


     Liabilities
     Equity
          Common stock                                    $ 287,000

                    Financial Statements, Taxes and Cash
                                    Flow                               1
Financial Statements, Taxes and
Cash Flows
   Financial Statements
     Net   working capital
        Current assets: definition?
        Current liabilities:




                     Financial Statements, Taxes and Cash
                                     Flow                   2
Financial Statements, Taxes and
Cash Flows
   Financial Statements
     Income statement
        Revenue
               When?
          Expenses
               When?
               Depreciation: definition?
               Dividends?

          Net Income / Number of Shares = EPS
             Trend in EPS



                           Financial Statements, Taxes and Cash
                                           Flow                   3
Corporate Tax Rates
   Calculations
     Table 2.3
     Marginal tax rate




                   Financial Statements, Taxes and Cash
                                   Flow                   4
Cash Flow
   Cash Flow From Assets
     Operating   Cash Flow
           Revenue
         - Expenses
         = Taxable Income
         - Taxes
         + Depreciation
         = Operating Cash Flow

                    Financial Statements, Taxes and Cash
                                    Flow                   5
Cash Flow
   Cash Flow From Assets
     Capital   Spending
            Ending Net Fixed Assets
          - Beginning Net Fixed Assets
          + Depreciation




                     Financial Statements, Taxes and Cash
                                     Flow                   6
Cash Flow
   Cash Flow From Assets
     Net   Working Capital
            Ending Net Working Capital
          - Beginning Net Working Capital
     Increase in Current Assets
     Increase in Current Liabilities




                     Financial Statements, Taxes and Cash
                                     Flow                   7
Cash Flow
   Cash Flow From Assets = Cash Flow to
    Creditors and Stockholders
     Creditors
         Decrease in Notes Payable + Interest Expense
     Stockholders
         Decrease in Common Stock + Dividends




                     Financial Statements, Taxes and Cash
                                     Flow                   8
Financial Statements, Taxes and Cash
                Flow                   9