FinStmts&EVA FIN 4114

FinStmts&EVA FIN 4114 - Financial Statements The...

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Financial Statements
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The Annual Report Balance sheet  Provides a snapshot of a firm’s financial position at  one point in time. Income statement  S ummarizes a firm’s revenues and expenses over a  given period of time. Statement of cash flows  Reports the impact of a firm’s activities on cash  flows over a given period of time. Statement of retained earnings Calculates retained earnings for use in the balance  sheet
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Links Between the Statements Net income is linked to statement of retained  earnings.  Statement of retained earnings is  linked to retained earnings reported on balance  sheet. Depreciation expense on the income statement is  related to accumulated depreciation on the  balance sheet – which in turn affects net PPE.
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Links Between the Statements Statement of cash flows demonstrates how much  cash the company has at a point in time.  The  level of cash is reported on the balance sheet.   Other links – statement of cash flows shows how  much money was used to purchase new fixed  assets – the change in fixed assets also shows up  on the balance sheet, etc. etc.  
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Balance Sheet: Assets 2006 2005 Cash 7,282 57,600 A/R 632,160 351,200 Inventories 1,287,360 715,200 Total CA 1,926,802 1,124,000 Gross FA 1,202,950 491,000 Less: Dep. 263,160 146,200 Net FA 939,790 344,800 Total Assets 2,866,592 1,468,800
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Balance sheet: Liabilities and Equity 2006 2005 Accts Payable 524,160 145,600 Notes Payable 636,808 200,000 Accruals 489,600 136,000 Total CL 1,650,568 481,600 Long-Term Debt 723,432 323,432 Common Stock 460,000 460,000 Retained Earnings 32,592 203,768 Total Equity 492,592 663,768 2,866,592 1,468,800
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Income Statement 2006 2005 Sales 6,034,000 3,432,000 COGS 5,528,000 2,864,000 Other Expenses 519,988 358,672 EBITDA (13,988) 209,328 116,960 18,900 EBIT (130,948) 190,428 Interest Expenses 136,012 43,828 EBT (266,960) 146,600 Taxes (106,784) 58,640 Net Income (160,176) 87,960
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Statement of Cash Flows Changes in cash = Cash from operating activities  + cash from investing activities + cash from  financing activities. •Cash from operating activities: Start with net  income, add back depreciation and amortization,  and make adjustments for changes in working  capital. •Cash from investing activities: Related to changes 
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This note was uploaded on 02/10/2012 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.

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FinStmts&EVA FIN 4114 - Financial Statements The...

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