文档介绍：该【《公司财务》学习的英文资料cha 】是由【duzw466】上传分享，文档一共【43】页，该文档可以免费在线阅读，需要了解更多关于【《公司财务》学习的英文资料cha 】的内容，可以使用淘豆网的站内搜索功能，选择自己适合的文档，以下文字是截取该文章内的部分文字，如需要获得完整电子版，请下载此文档到您的设备，方便您编辑和打印。0
Chapter 2
Annual Work Summary Report
Financial Statements, Taxes, and Cash Flow
202X年12月20日
1
Chapter Outline
Annual Work Summary Report
The Balance Sheet
The Income Statement
Taxes
Cash Flow
202X年12月20日
Key Concepts and Skills
Know the difference between book value and market value
Know the difference between accounting income and cash flow
Know the difference between average and marginal tax rates
Know how to determine a firm’s cash flow from its financial statements
The Balance Sheet
The balance sheet is a snapshot of the firm’s assets and liabilities at a given point in time
1
Assets are listed in order of decreasing liquidity
2
Ease of conversion to cash without significant loss of value
3
Balance Sheet Identity
4
Assets = Liabilities + Stockholders’ Equity
5
3
Figure
4
. Corporation Balance Sheet – Table
Balance Sheet Analysis
When analyzing a balance sheet, the Finance Manager should be aware of three concerns:
Accounting liquidity
Debt versus equity
Value versus cost
Accounting Liquidity
Refers to the ease and quickness with which assets can be converted to cash—without a significant loss in value
Current assets are the most liquid.
Some fixed assets are intangible.
1
2
3
4
5
Liquid assets frequently have lower rates of return than fixed assets.
The more liquid a firm’s assets, the less likely the firm is to experience problems meeting short-term obligations.
Debt versus Equity
Creditors generally receive the first claim on the firm’s cash flow.
Shareholder’s equity is the residual difference between assets and liabilities.
8
Market vs. Book Value
The balance sheet provides the book value of the assets, liabilities, and equity.
Historical Cost Principle: Under Generally Accepted Accounting Principles (GAAP), audited financial statements of firms in the . carry assets at cost.
Market value is the price at which the assets, liabilities, or equity can actually be bought or sold , which is a completely different concept from historical cost.