Ch02 - CHAPTER2 FinancialStatements,Cash Flow,andTaxes Balancesheet Incomestatement Accountingincomevs.cashflow MVAandEVA Federaltaxsystem 21

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    2-1 CHAPTER 2 Financial Statements, Cash  Flow, and Taxes Balance sheet  Income statement Statement of cash flows Accounting income vs. cash flow MVA and EVA Federal tax system
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    2-2 The Annual Report Balance sheet – provides a snapshot of a  firm’s financial position at one point in time. Income statement – summarizes a firm’s  revenues and expenses over a given period of  time. Statement of retained earnings – shows how  much of the firm’s earnings were retained,  rather than paid out as dividends. Statement of cash flows – reports the impact  of a firm’s activities on cash flows over a given  period of time.
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    2-3 Balance Sheet: Assets    Cash A/R Inventories Total CA Gross FA Less: Dep. Net FA Total Assets       2002 7,282   632,160 1,287,360 1,926,802 1,202,950     263,160     939,790 2,866,592     2001 57,600 351,200     715,200 1,124,000 491,000     146,200     344,800 1,468,800
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    2-4 Balance sheet:  Liabilities and Equity Accts payable Notes payable Accruals Total CL Long-term debt Common stock Retained earnings Total Equity       2002 524,160   636,808     489,600 1,650,568 723,432 460,000       32,592     492,592 2,866,592     2001 145,600 200,000     136,000 481,600 323,432 460,000     203,768     663,768 1,468,800
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    2-5 Income statement Sales COGS Other expenses EBITDA EBIT Interest Exp. EBT Taxes Net income     2002 6,034,000   5,528,000     519,988 (13,988)     116,960 (130,948)     136,012 (266,960)   (106,784)  (160,176)    2001 3,432,000 2,864,000     358,672 209,328       18,900 190,428       43,828 146,600       58,640   87,960
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    2-6 Other data No. of shares EPS DPS Stock price Lease pmts 2002 100,000 -$1.602 $0.11 $2.25 $40,000 2001 100,000 $0.88 $0.22 $8.50 $40,000
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    2-7 Statement of Retained  Earnings (2002) Balance of retained earnings, 12/31/01 Add: Net income, 2002 Less: Dividends paid Balance of retained  earnings, 12/31/02 $203,768 (160,176)    (11,000) $32,592
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  2-8 Statement of Cash Flows  (2002) OPERATING ACTIVITIES Net income Add (Sources of cash): Depreciation Increase in A/P Increase in accruals Subtract (Uses of cash): Increase in A/R Increase in inventories Net cash provided by ops. (160,176)
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This note was uploaded on 12/04/2010 for the course BA 201 taught by Professor Jones during the Spring '10 term at Mansfield University of Pennsylvania.

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Ch02 - CHAPTER2 FinancialStatements,Cash Flow,andTaxes Balancesheet Incomestatement Accountingincomevs.cashflow MVAandEVA Federaltaxsystem 21

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