Chapter 03_Financial Statements_Student

Chapter 03_Financial Statements_Student - 3-1 3-1 CHAPTER 3...

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Unformatted text preview: 3-1 3-1 CHAPTER 3 Financial Statements, Cash Flow, and Taxes Key Financial Statements Balance sheet Income statements Statement of retained earnings Statement of cash flows Accounting income vs. cash flow Federal tax system 3-2 3-2 The annual report Balance sheet Income statement Statement of retained earnings Statement of cash flows 3-3 3-3 Balance sheet: Assets Cash A/R Inventories Total CA Gross FA Less: Dep. Net FA Total Assets 2005 7,282 632,160 1,287,360 1,926,802 1,202,950 263,160 939,790 2,866,592 2004 57,600 351,200 715,200 1,124,000 491,000 146,200 344,800 1,468,800 3-4 3-4 Balance sheet: Liabilities and Equity Accts payable Notes payable Accruals Total CL Long-term debt Common stock Retained earnings Total Equity Total L & E 2005 524,160 636,808 489,600 1,650,568 723,432 460,000 32,592 492,592 2,866,592 2004 145,600 200,000 136,000 481,600 323,432 460,000 203,768 663,768 1,468,800 3-5 3-5 Income statement Sales COGS Other expenses EBITDA Depr. & Amort. EBIT Interest Exp. EBT Taxes Net income 2005 6,034,000 5,528,000 519,988 (13,988) 116,960 (130,948) 136,012 (266,960) (106,784) (160,176) 2004 3,432,000 2,864,000 358,672 209,328 18,900 190,428 43,828 146,600 58,640 87,960 3-6 3-6 Other data No. of shares EPS DPS Stock price Lease pmts 2005 100,000-$1.602 $0.11 $2.25 $40,000 2004 100,000 $0.88 $0.22 $8.50 $40,000 3-7 3-7 Statement of Retained Earnings (2005) Balance of retained earnings, 12/31/04 Add: Net income, 2005 Less: Dividends paid Balance of retained earnings, 12/31/05 $203,768 (160,176) (11,000) $32,592 3-8 3-8 Statement of Cash Flows (2005) 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) 116,960 378,560 353,600 (280,960) (572,160) (164,176) 3-9 3-9 Statement of Cash Flows (2005) L-T INVESTING ACTIVITIES Investment in fixed assets FINANCING ACTIVITIES Increase in notes payable Increase in long-term debt Payment of cash dividend Net cash from financing...
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This note was uploaded on 03/10/2012 for the course CHFS 250 taught by Professor Darnt during the Spring '08 term at University of Tennessee.

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Chapter 03_Financial Statements_Student - 3-1 3-1 CHAPTER 3...

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