Chap003s - Working With Financial Statements Chapter Three...

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Working With Financial Statements Chapter Three
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Sample Balance Sheet – Assets - $000s 2006 2005 Difference Cash $3,171 $6,489 -$3,318 A/R 1,095,118 1,048,991 46,127 Inventory 388,947 295,255 93,692 Other CA 314,454 232,304 82,150 Total CA $1,801,690 $1,583,039 $218,651 Net FA $3,129,754 $2,535,072 $594,682 Total Assets $4,931,444 $4,118,111 $813,333
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Sample Balance Sheet – L+OE - $000s 2006 2005 Difference A/P $313,286 $340,220 -$26,934 N/P 227,848 86,631 141,217 Other CL 1,239,651 1,098,602 141,049 Total CL $1,780,785 $1,525,453 $255,332 LTD $1,389,615 $944,168 $445,447 C/S and PI Surplus $1,761,044 $1,648,490 $112,554 Total L+OE $4,931,444 $4,118,111 $813,333
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Sample Income Statement - $000s Revenues $4,335,491 COGS 1,762,721 Expenses 1,390,262 Depreciation 362,325 EBIT $820,183 Interest Expense 52,841 Taxable Income $767,342 Taxes 295,426 Net Income $471,916 Dividends Paid $395,521 Addition to RE $76,395
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Sources and Uses Sources Cash inflow – occurs when we “sell” something Decrease in asset account ( Sample B/S ) In this example, Cash & equivalents is the only source Increase in liability or equity account In this example, everything except accounts payable is a source Uses Cash outflow – occurs when we “buy” something Increase in asset account In this example, everything except cash & equivalents is a use Decrease in liability or equity account In this example, Accounts payable is the only use
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Sample Sources and Uses Statement ($000s) Sources of Cash: Increase in N/P $141,217 Increase in Other CL 141,049 Increase in LT Debt 445,447 Increase in C/S 112,554 Total Sources $840,267 Uses of Cash: Increase in A/R $46,127 Increase in Inventory 93,692 Increase in Other CA 82,150 Increase in Net FA 594,682 Decrease in A/P 26,934 Total Uses $843,585 Net Addition to Cash -$3,318
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Statement of Cash Flows Statement that summarizes the sources and uses of cash Changes divided into three major categories Operating Activity – includes net income and changes in most current accounts Investment Activity – includes changes in fixed assets Financing Activity – includes changes in notes payable, long-term debt and equity accounts as well as dividends
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Sample Statement of Cash Flows - $000s Cash, beginning of year $6,489 Operating Activity I/F Net Income $471,916 Plus: I/F Depreciation 362,325 I/F Increase in A/P -$26,934 I/F
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