IM Chapter 2 Financial Statements Taxes and Cash Flow

IM Chapter 2 Financial Statements Taxes and Cash Flow -...

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Chapter 2 FINANCIAL STATEMENTS, TAXES AND CASH FLOW SLIDES CHAPTER WEB SITES Section Web Address 2.1 finance.yahoo.com money.cnn.com disney.go.com www.sec.gov www.fasb.org 2.3 www.irs.gov 2.4 www.mcgraw-hill.com End-of-chapter material www.mhhe.com/edumarketinsight www.coca-cola.com www.coopertires.com www.ibm.com 2.1 Key Concepts and Skills 2.2 Chapter Outline 2.3 Balance Sheet 2.4 The Balance Sheet – Figure 2.1 2.5 Net Working Capital and Liquidity 2.6 U.S. Corporation Balance Sheet – Table 2.1 2.7 Market Vs. Book Value 2.8 Example 2.2 Klingon Corporation 2.9 Income Statement 2.10 U.S. Corporation Income Statement – Table 2.2 2.11 Work the Web Example 2.12 Taxes 2.13 Example: Marginal Vs. Average Rates 2.14 The Concept of Cash Flow 2.15 Cash Flow From Assets 2.16 Example: U.S. Corporation – Part I 2.17 Example: U.S. Corporation – Part II 2.18 Table 2.5 Cash Flow Summary 2.19 Example: Balance Sheet and Income Statement Information 2.20 Example: Cash Flows 2.21 Quick Quiz
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A-19 CHAPTER 2 CHAPTER ORGANIZATION 2.1 The Balance Sheet Assets: The Left-Hand Side Liabilities and Owners’ Equity: The Right-Hand Side Net Working Capital Liquidity Debt versus Equity Market Value versus Book Value 2.2 The Income Statement GAAP and the Income Statement Noncash Items Time and Costs 2.3 Taxes Corporate Tax Rates Average versus Marginal Tax Rates 2.4 Cash Flow Cash Flow from Assets Cash Flow to Creditors and Stockholders An Example: Cash Flows for Dole Cola 2.5 Summary and Conclusions Part Two: Mini-Case Ratios and Financial Planning at S&S Air, Inc. ANNOTATED CHAPTER OUTLINE Slide 2.1 Key Concepts and Skills Slide 2.2 Chapter Outline 2.1. The Balance Sheet Slide 2.3 The Balance Sheet .A Assets: The Left-Hand Side Assets are divided into several categories. Make sure that students recall the difference between current and fixed assets and tangible and intangible assets.
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CHAPTER 2 A-20 .B Liabilities and Owners’ Equity: The Right-Hand Side The right-hand side is categorized by the firm’s debt and its ownership. Make sure that students recall the difference between current and long- term liabilities. Recall the balance sheet identity: assets = liabilities + owners’ equity Lecture Tip, page 21: Students sometimes find it difficult to see the relationship between the decisions made by financial managers and the values that subsequently appear on the firm’s balance sheet. One way to help them see the “big picture” is to emphasize that all finance decisions are either investment decisions or financing decisions. Investment decisions involve the purchase and sale of any assets (not just financial assets). Investment decisions show up on the left-hand side of the balance sheet. Financing decisions involve the choice of whether to borrow money to buy the assets or to issue new ownership shares.
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