【財務(wù)管理英文課件】Fund-Analysis-Cash-Flow-Analysis-and-Financial-Planning

Chapter7FundAnalysis,Cash-FlowAnalysis,andFinancialPlanningFundAnalysis,Cash-FlowAnalysis,andFinancialPlanningFlowofFunds(SourcesandUses)StatementAccountingStatementofCash-FlowsCash-FlowForecastingRangeofCash-FlowEstimatesForecastingFinancialStatementsFlowofFundsStatementHasbeenreplacedbythecashflowstatement

(1989)inU.S.auditedannualreports.Asummaryofafirm’schangesinfinancialpositionfromoneperiodtoanother;itisalsocalledasourcesandusesoffundsstatementorastatementofchangesinfinancialposition.WhyExaminetheFlow ofFundsStatementQUESTION?WhyshouldwebothertounderstandaFlowofFundsStatementthatisnolongerrequiredtoappearinU.S.auditedannualreports?WhyExaminetheFlow ofFundsStatementIncludesimportantnoncashtransactionswhilethecashflowstatementdoesnot.IseasytoprepareandoftenpreferredbymanagersforanalysispurposesoverthemorecomplexcashflowstatementHelpsyoutobetterunderstandthecashflowstatement,especiallyifitispreparedundertheIndirectmethod.TheFlowofFundsStatement:FlowofFundsStatementAllofthefirm‘sinvestmentsandclaimsagainstthoseinvestments.Extendsbeyondjusttransactionsinvolvingcash.Whatarefunds?Sourcesand UsesStatementTheletterslabelingtheboxstandforUses,

Sources,

Assets,andLiabilities

(broadlydefined).Thepluses(minuses)indicateincreases(decreases)inassetsorliabilities.A

L-++-SUBWs’Determination ofSourcesandUses$100-S410-S616+U5--

9+U$1,140 N/A

930 N/A(299) N/A$631+

U50--

223

--$2,044CashandC.E.$90Acct.Rec.394Inventories696PrepaidExp

5AccumTaxPrepay

10

CurrentAssets

$

1,195FixedAssets(@Cost)

1030Less:Acc.Depr.

(329)

NetFix.Assets

$701Investment,LT

50OtherAssets,LT223

TotalAssets

$2,169

Assets19X319X2+/-S/UBWs’Determination ofSourcesandUses$100$10S41016S61680

U5--

91

U$1,140 N/A

930 N/A(299) N/A$63170

U50--

223

--$2,044CashandC.E.$90Acct.Rec.394Inventories696PrepaidExp

5AccumTaxPrepay

10

CurrentAssets

$

1,195FixedAssets(@Cost)

1030Less:Acc.Depr.

(329)

NetFix.Assets

$701Investment,LT

50OtherAssets,LT223

TotalAssets

$2,169

Assets19X319X2+/-S/UBWs’Determination ofSourcesandUses$295-U94--16--

100--$

505

N/A

453+S

200--729--

157+S$1086

N/A$2,044NotesPayable$290Acct.Payable

94AccruedTaxes

16OtherAccruedLiab.100

CurrentLiab.

$500Long-TermDebt

530Shareholders?Equity

Com.Stock($1par)

200

AddPdinCapital

729RetainedEarnings

210

TotalEquity $

1,139

TotalLiab/Equity

$

2,169LiabilitiesandEquity19X319X2+/-S/UBWs’Determination ofSourcesandUses$295$5U94--16--

100--$

505

N/A

45377S

200--729--

15753S$1086

N/A$2,044NotesPayable$290Acct.Payable

94AccruedTaxes

16OtherAccruedLiab.100

CurrentLiab.

$500Long-TermDebt

530Shareholders?Equity

Com.Stock($1par)

200

AddPdinCapital

729RetainedEarnings

210

TotalEquity $

1,139

TotalLiab/Equity

$

2,169LiabilitiesandEquity19X319X2+/-S/UBasicSources andUsesStatement

USES

$156Increase,Inventories $80Increase,AccruedTaxes 1Decrease,NotesPayable 5Increase,NetFixedAssets 70

$156SOURCESIncrease,RetainedEarnings $53Decrease,AccountsReceivable 16Increase,Long-TermDebt 77Decrease,Cash+CashEquivalents 10AdjustingtheBasicSourcesandUsesStatementThefollowingthreeslidesareBasketWonders’BalanceSheetandIncomeStatementthatwasdiscussedinChapter6.ThisinformationwillbeneededtoadjustthebasicSourcesandUsesStatement.BasketWonders’BalanceSheet(AssetSide)a.Howthefirmstandsonaspecificdate.b.WhatBWowned. c.Amountsowedbycustomers.d.Futureexpenseitemsalreadypaid.e.Cash/likelyconvertibletocashwithin1year.f.Originalamountpaid.g.Acc.deductionsforwearandtear.CashandC.E. $90Acct.Rec.c 394Inventories 696PrepaidExp

d 5AccumTaxPrepay

10

CurrentAssetse$1,195FixedAssets(@Cost)f1030Less:Acc.Depr.g (329)

NetFix.Assets

$701Investment,LT

50OtherAssets,LT 223

TotalAssets b$2,169BasketWondersBalanceSheet(thousands)Dec.31,19X3aBasketWonders’BalanceSheet(LiabilitySide)a.Note,Assets=Liabilities+Equity.b.WhatBWowedandownershipposition. c.Owedtosuppliersforgoodsandservices.d.Unpaidwages,salaries,etc.e.Debtspayable<1year.f.Debtspayable>1year.g.Originalinvestment.h.Earningsreinvested.NotesPayable $ 290Acct.Payablec 94AccruedTaxes

d 16OtherAccruedLiab.

d

100

CurrentLiab.

e$500Long-TermDebt

f

530

Shareholders’Equity Com.Stock($1par)

g

200

AddPdinCapital

g 729RetainedEarnings

h

210

TotalEquity $1,139

TotalLiab/Equitya,b$2,169BasketWondersBalanceSheet(thousands)Dec.31,19X3BasketWonders’IncomeStatementa.Measuresprofitabilityoveratimeperiod.b.Received,orreceivable,fromcustomers. c.Salescomm.,adv.,officer‘ssalaries,etc.d.Operatingincome.e.Costofborrowedfunds.f.Taxableincome.g.Amountearnedforshareholders.NetSales $2,211CostofGoodsSold

b

1,599 GrossProfit

$612SG&AExpensesc

402

EBITd

$210InterestExpensee

59

EBTf

$

151

IncomeTaxes

60

EATg

$91CashDividends

38IncreaseinRE

$53BasketWondersStatementofEarnings(inthousands)forYearEndingDecember31,19X3aAdjustingtheBasicSourcesandUsesStatementRecognizeProfitsandDividendsChangeinretainedearningsiscomposedofprofitsanddividends.Source: NetProfit $91LessUse: CashDividends 38

(Net)Source:Incr.,R.E. $53AdjustingtheBasicSourcesandUsesStatementRecognizeDepreciationandGrossChangesinFixedAssetsChangeinnetfixedassetsiscomposedofdepreciationandfixedassets.Source: Depreciation$30LessUse: Add.toF.A. 100(Net)Use:Incr.,NetF.A.

$70SourcesandUsesStatement(SourcesSide)SOURCESFundsprovidedbyoperations NetProfit $91 Depreciation 30Decrease,AccountsReceivable 16Increase,Long-TermDebt 77Decrease,Cash+CashEquivalents 10

$224USES

Dividends $38 Additionstofixedassets 100Increase,Inventories 80Increase,AccruedTaxes 1Decrease,NotesPayable 5

$224SourcesandUsesStatement(UsesSide)AnalyzingtheSourcesandUsesStatementUsesPrimarilythroughanincreaseininventoriesandexpendituresoncapitalassets.SourcesPrimarilythroughnetprofitfromoperationsandlong-termdebtincreases.StatementofCashFlowsoperatingactivities,investingactivities,andfinancingactivities.Asummaryofafirm‘spaymentsduringaperiodoftime.Thisstatementreportscashinflowsandoutflowsbasedonthefirm’sStatementofCashFlowsCashFlowfromoperatingactivitiesShowsimpactoftransactionsnotdefinedasinvestingorfinancingactivities.Thesecashflowsaregenerallythecasheffectsoftransactionsthatenterintothedeterminationofnetincome.CashFlowFromOperatingActivitiesCashInflowsFromsalesofgoodsorservicesFrominterestanddividendincomeCashOutflowsTopaysuppliersforinventoryTopayemployeesforservicesTopaylenders(interest)TopaygovernmentfortaxesTopayothersuppliersforotheroperatingexpensesCashFlowFromOperatingActivitiesItwouldseemmorelogicaltoclassifyinterestanddividendincomeasaninvesting?inflow,whileinterestpaidcertainlylookslikeafinancing?outflow.But,theU.S.FinancialAccountingStandardsBoard--byaslim4to3vote--classifiedtheseitemsasoperating?flows.StatementofCashFlowsCashFlowfromfinancingactivitiesShowsimpactofallcashtransactionswithshareholdersandtheborrowingandrepayingtransactionswithlenders.CashFlowfrominvestingactivitiesShowsimpactofbuyingandsellingfixedassetsanddebtorequitysecuritiesofotherentities.CashFlowFromInvestingActivitiesCashInflowsFromsaleoffixedassets(property,plant,equipment)Fromsaleofdebtorequitysecurities(otherthanC.E.)ofotherentitiesCashOutflowsToacquirefixedassets(property,plant,equipment)Topurchasedebtorequitysecurities(otherthanC.E.)ofotherentitiesCashFlowFromFinancingActivitiesCashInflowsFromborrowingFromthesaleofthefirm’sownequitysecuritiesCashOutflowsTorepayamountsborrowedTorepurchasethefirm’sownequitysecuritiesTopayshareholdersdividendsIndirectMethod--StatementofCashFlowsCashFlowfromOperatingActivitiesNetIncome $91Depreciation 30Decrease,accountsreceivable 16Increase,inventories (80)Increase,accum.taxprepay (1)

Netcashprovided(used)by operatingactivities $56IndirectMethod--StatementofCashFlowsCashFlowfromInvestingActivitiesAdditionstoFixedAssets $(100)

Netcashprovided(used)by investingactivities $(100)IndirectMethod--StatementofCashFlowsCashFlowfromFinancingActivitiesIncrease,notespayable $(5)Increase,long-termdebt

77Dividendspaid (38)

Netcashprovided(used)by financingactivities $34IndirectMethod--StatementofCashFlowsIncrease(decrease)incash andcashequivalents $(10)Cashandcashequivalents,19X2

100Cashandcashequivalents,19X3

$90Supplementalcashflowdisclosures Interestpaid $59 Taxespaid 60DirectMethod--StatementofCashFlowsCashFlowfromOperatingActivitiesCashreceivedfromcustomersa $2,227Cashpaidtosuppliersand employeesb (2,051)Interestpaid (59)Taxespaidc (61)

Netcashprovided(used)by operatingactivities $56WorksheetforPreparingOperatingActivitiesSection

Sales $2,211+(-) Decrease(increase)inAR

16 Cashreceivedfromcustomersa

$2,227 COGS-Depreciation+SGA $1,971+(-) Increase(decrease)ininventory 80 Cashpaidtosuppliersand employeesb $2,051 Incometaxes(federal/state) $60+(-) Incr(Decr)inaccum.taxprepay 1 Taxespaidc $61DirectMethod--StatementofCashFlowsCashFlowfromInvestingActivitiesAdditionstoFixedAssets $(100)

Netcashprovided(used)by investingactivities $(100)DirectMethod--StatementofCashFlowsCashFlowfromFinancingActivitiesIncrease,notespayable $(5)Increase,long-termdebt

77Dividendspaid (38)

Netcashprovided(used)by financingactivities $34DirectMethod--StatementofCashFlowsIncrease(decrease)incash andcashequivalents $(10)Cashandcashequivalents,19X2100Cashandcashequivalents,19X3$90Supplementalcashflowdisclosures NetIncome $91 Depreciation 30 Decrease,accountsreceivable 16 Increase,inventories (80) Increase,accum.taxprepay (1) Netcashprovided(used)by operatingactivities $56CashFlowForecastingDeterminethefuturecashneedsofthefirmPlanforthefinancingoftheseneedsExercisecontrolovercashandliquidityofthefirmA

CashBudget

isaforecastofafirm’sfuturecashflowsarisingfromcollectionsanddisbursements,usuallyonamonthlybasis.Thefinancialmanagerisbetterableto:TheSalesForecastSalesrepresentativesprojectsalesfortheperiodinquestion(salesundertheircontrolormanagement).Salesprojectionsarescreenedandconsolidatedforproductlines.Productlinesalesprojectionsareconsolidatedintoasingleforecast.InternalSalesForecastTheSalesForecastEconomistsprojectoveralleconomicandbusinesstrendsthatwillaffectthefirm.Expectedmarketshareisprojectedforcurrentandnewproductlines.Productlinesalesprojectionsareconsolidatedintoasingleforecast.ExternalSalesForecastBWsCashFlowForecastLisaMillerhasfinalizedacashflowforecastforthefirstsixmonthsof19X4.Lisaisexpecting90%ofmonthlysaleswillbecreditsaleswith80%ofcreditsalescollectedin30days,20%in60days,andnobaddebts.Hint:Thecashflowforecastwillbeusedinforecastingthefinancialstatementslaterinthischapter.CollectionsandOther CashReceipts(Thousands)SALES NOV DECJANFEBCreditSales,90% $193$212$154$135CashSales,10% 21

24

17

15TotalSales,100% $214$236$171$150CASHCOLLECTIONSCashsales,current $17$1580%oflastmonth’s 169123creditsales20%of2-month-old 3942creditsales

Totalsalesreceipts $225$180SALES MAR APRMAYJUNCreditSales,90% $256$205$160$190CashSales,10% 28

23

18

21TotalSales,100% $284$228$178$211CASHCOLLECTIONSCashsales,current $28$23$18$2180%oflastmonth’s 108 205164128creditsales20%of2-month-old 31 275141creditsales

Totalsalesreceipts $167$255$233$190CollectionsandOther CashReceipts(Thousands)ScheduleofProjectedCashDisbursements(Thousands)

DEC JANFEBPurchases $39$35$64CASHDISBURSEMENTSFORPURCHASES ANDOPERATINGEXPENSES100%oflastmonth’s $39$35purchasesWagespaid 9094Otherexpensespaid 3434Totaldisbursements(purchases

andoperatingexpenses) $163$163

MARAPRMAYJUNPurchases $53$40$48$50CASHDISBURSEMENTSFORPURCHASESANDOPERATINGEXPENSES100%oflastmonth’s$64$53$40$48purchasesWagespaid 11110792

92Otherexpensespaid 343434

34Totaldisbursements $209$194$166

$203(purchasesandoperatingexpenses)

ScheduleofProjectedCashDisbursements(Thousands)ScheduleofNetCash Disbursements(Thousands)

JAN

FEB

MARTotaldisbursementsfor $163$163$209 purchasesandoperating expenses

CapitalExpenditures 70400Dividendpayments 009Incometaxes 2500Totalcashdisbursements $255$203$218ScheduleofNetCash Disbursements(Thousands)

APR

MAY

JUNTotaldisbursementsfor $194$166$203 purchasesandoperating expenses

CapitalExpenditures 000Dividendpayments 0010Incometaxes 2500Totalcashdisbursements $219$166$213

JAN

FEB

MARBeginningcashbalance$90$60$37Totalcashreceipts 225180167Totalcashdisbursements 255

203

218Netcashflow $(

30)$(

23)$(

51)Endingcashbalance withoutadditionalfinancing$60$37$(14)ProjectedNetCash FlowsandCashBalances

APR

MAY

JUNBeginningcashbalance$(14)$22$89Totalcashreceipts 255233190Totalcashdisbursements 219

166

213Netcashflow $

36$

67$(

23)Endingcashbalance withoutadditionalfinancing$22$89$66ProjectedNetCash FlowsandCashBalancesRangeof Cash-FlowEstimatesExaminefactorsthatmayinfluencecashdisbursementssuchaschangesinthestateoftheeconomythatimpactoperations,capitalexpendituresanddividendpayments.Examinefactorsthatmayinfluencecashreceiptssuchaschangesinthestateoftheeconomythatinfluenceconsumerbuyingdecisionsandpricingstrategies.ManagementUncertaintyinEndingCashBalancesENDINGCASHBALANCE(thousands)JanuaryDistributionPROBABILITYOFOCCURRENCE$42$51$60$69$78ManagementUncertaintyinEndingCashBalancesENDINGCASHBALANCE(thousands)FebruaryDistributionPROBABILITYOFOCCURRENCE

$4$15$26$37$48SummaryoftheRange ofCash-FlowEstimatesAllowsexaminationoftherelevantfactorswhichmaygenerateuncertaintyregardingfuturecashflows.Enablesmanagementtobetterplanforcontingenciesthatwillarisethanusingasingle-pointestimateofmonthlycashflows.Forecasting FinancialStatements(1)ForecastedIncomeStatement(2)ForecastedBalanceSheetExpectedfuturefinancialstatementsbasedonconditionsthatmanagementexpectstoexistandactionsitexpectstotake.ConsiderationsForecastingBWs’ IncomeStatementLisaMillerisforecastingtheincomestatementfor19X4.Sheestimatesthatsales

forthe6monthsendedJune30willbe$1,222,000.COGSareestimatedfromtheaverageofyears19X1through19X3.Selling,