financial statement, taxes, and cash flow
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FINANCIAL STATEMENTS, TAXES and CASH FLOW
Carrine Kezia Aulia :: 102183022
Presentation OutlineThe Balance Sheet
The Income Statement
Taxes
Cash Flow
Balance Sheet
Jan Dec
1 31
Balance Sheet
Balance Sheet
ASSETS
LIABILITIES
EQUITY
ownedowes
to others
TOTAL
TOTAL
Balance Sheet - Assets
CURRENT ASSETS FIXED ASSETS OR LONG TERM ASSESTS
• Cash
• Account receivable
• Supplies / Inventory
• Building / land
• Vehicle
• Machinery
owned
Balance Sheet - Liabilities
CURRENT LIABILITIES
LONG TERM LIABILITIES
• Account Payable
• Taxes Payable
• Notes Payable
• Bond
• Equipment Loan
oweto others
Balance Sheet – Owner’s Equity
• Common Stock
• Retained Earnings
Net Working Capital & LiquidityPurpose :
Impact : Decision making
NET WORKING CAPITAL
CURRENTASSETS
CURRENT LIABILITIES
CAPABLE
NOTCAPABL
E
Net Working Capital & Liquidity
LIQUIDITYor CURRENT
RATIO
CURRENTASSETS
CURRENT LIABILITIES
HIGHER CURRENT RATIO MORE CASH IN HANDHIGHER NWC
PRACTISE MAKES PERFECTAsia University has current assets of $5,100,
net fixed assets of $23,800, current liabilities of $4,300, and long-term debt of $7,400.
1.What is the value of the shareholders’ equity account for Asia University?
2.How much is net working capital?
ASIA UNIVERSITY
BALANCE SHEET
CURRENT ASSETS $5,100 CURRRENT LIABILITIES $4,300
FIXED ASSETS $23,800 LONG-TERM LIABILITIES $7,400
TOTAL $11,700
SHARE HOLDER EQUITY $17,200
TOTAL $28,900 TOTAL $28,900
NET WORKING CAPITAL $800
BOOK VALUEand
MARKET VALUE
Balance Sheet
Assets, liabilities, and Equity
BookValue
Value that company paid for them
MarketValue
ActualPrice
Assets, liabilities, and Equity
Which is more important to the decision-making process?
BOOK VALUE
MARKET
VALUE
PRACTISE MAKES PERFECTAsia University purchased new machinery three
years ago for $7 million. The machinery can be sold to the CMU today for $4,9 million. Asia University current balance sheet shows net fixed assets of $3,7 million, current liabilities of $1,1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1,6 million cash.
1.What is the book value of AU’s assets today?
2.What is the market value?
ASIA UNIVERSITY
BALANCE SHEET
CURRENT ASSETS $1,480,000 CURRRENT LIABILITIES $1,100,000
FIXED ASSETS $3,700,000
TOTAL $5,180,000
NET WORKING CAPITAL $380,000
BOOK VALUEOF ASSETS
MARKET VALUE = MV CA + MV FA If all the current assets were liquidated today,
the company would receive $1,6 million cash.
The machinery can be sold to the CMU today for $4,9 million
MV of Current Assets = $1,6 million
MV of Fixed Assets = $4,9 million
Market Value = MV CA + MV FA
= 1,6 million + 4,9 million
= 6,5 million
REVIEW
Income Statement
1 31COMPANY’S REVENUE AND COSTS
PROFIT and LOSS STATEMENTREVENUE and
EXPENSE STATEMENT
EBIT
EBT
1,320 + 309
Real Sample
calculatingEARNINGS and DIVIDENDS per share
EPSDIVIDEN
Dper
share
NET INCOMETOTAL SHARE OUTSTANDING
TOTAL DIVIDENDTOTAL SHARE OUTSTANDING
PRACTISE MAKES PERFECTAsia University has sales of $586,000, costs of
$247,000, depreciation expense of $43,000, interest expense of $32,000 and a tax rate 35%
1.What is the net income?
2.If AU paid $73,000 in cash dividends. What is the addition to retained earnings?
3.If AU had $85,000 shares of common stock outstanding, What is EPS? What is Dividens per share?
Sales $586,000
Costs $247,000
Depreciation $ 43,000
EBIT
Interest $ 32,000
TAXABLE INDOME / EBT
Tax (35%)
NET INCOME
$296,000
$264,000$ 92,000
$171,600
Dividends $73,000
Retainedearnings $98,60
0
Share of common stock outstanding$85,000
EPS =NET INCOMETotal share outstanding
$171,600$85,000
=
= $2,01 per share
DPS =TOTAL
DIVIDENDSTotal share outstanding
$73,600$85,000
=
= $,86 per share
REVIEW