财务报表分析(英文版)

A.MeasuringBusinessIncomea.explainwhyfinancialstatementsarepreparedattheendoftheregularaccountingperiod.MajorFinancialStatements:Thebalancesheet:providesa"snapshot"ofthefirm'sfinancialcondition.Theincomestatement:reportsonthe"performance"ofthefirm.Thestatementofcashflows:reportsthecashreceiptsandcashoutflowsclassifiedaccordingtooperating,investmentandfinancingactivities.Thestatementofstockholder'sequity:reportstheamountsandsourcesofchangesinequityfromtransactionswithowners.Thefootnotesofthefinancialstatements:allowusestoimproveassessmentoftheamount,timinganduncertaintyoftheestimatesreportedinthefinancialstatements.Themostaccuratewaytomeasuretheresultsofenterpriseactivitywouldbetomeasurethematthetimeoftheenterprise'seventualliquidation.Business,government,investors,andvariousotherusergroups,however,cannotwaitindefinitelyforsuchinformation.Ifaccountantsdidnotprovidefinancialinformationperiodically,someoneelsewould.Theperiodicityortimeperiodassumptionsimplyimpliesthattheeconomicactivitiesofanenterprisecanbedividedintoartificialtimeperiods.Thesetimeperiodsvary,butthemostcommonaremonthly,quarterly,andyearly.Theinformationmustbereliableandrelevant.Thisrequiresthatinformationmustbeconsistentandcomparableovertimeandalsobeprovidedonatimelybasis.Theshorterthetimeperiod,themoredifficultitbecomestodeterminethepropernetincomefortheperiod.Amonth'sresultsareusuallylessreliablethanaquarter'sresults,andaquarter'sresultsarelikelytobelessreliablethanayear'sresults.Investorsdesireanddemandthatinformationbequicklyprocessedanddisseminated;yetthequickertheinformationisreleased,themoreitissubjecttoerror.Thisphenomenonprovidesaninterestingexampleofthetrade-offbetweenrelevanceandreliabilityinpreparingfinancialdata.Inpractice,financialreportingisdoneattheendoftheaccountingperiod.Accountingperiodscanbeanylengthintime.Firmstypicallyusetheyearastheprimaryaccountingperiod.The12-monthaccountingperiodisreferredtoasthefiscalyear.Firmsalsoreportforperiodslessthanayear(e.g.quarterly)onaninterimbasis.Accountingperiodmustbeofequallength.Financialstatementsarepreparedattheendoftheregularaccountingperiodtoallowcomparisonacrosstime.UserCommentsPostedbyJeanette@2003-10-2514:15:45.sameperiod---allowcomparisionbasicassumptioninpreparingfinancialstatementsis----thefirmwillcontinueinoperation,---goingconcern,'assigningrevenue-expenses----baseonmatchingprinciplePostedbyGiGi@2004-01-2906:25:01.rememberthatthereare4typesoffinancialstatementsb.explainwhytheaccountsmustbeadjustedattheendofeachperiod.Why?Mostexternaltransactionsarerecordedwhentheyoccur.Theemploymentofanaccrualsystemmeansthatnumerousadjustmentsarenecessarybeforefinancialstatementsarepreparedbecausecertainaccountsarenotaccuratelystated.Someexternaltransactionsmightnotevenseemliketransactionsandarerecognizedonlyattheendoftheaccountingperiod.Examplesincludeunrecordedrevenuesandcreditpurchase.Someeconomicactivitiesdonotoccurastheresultofexternaltransactions.Examplesincludedepreciationandtheexpirationofprepaidexpenses.Timing:Oftenatransactionaffectstherevenueorexpensesoftwoormoreaccountingperiods.Therelatedcashinfloworoutflowdoesnotalwayscoincidewiththeperiodinwhichtheserevenueorexpenseitemsarerecorded.Thus,theneedforadjustingentriesresultsfromtimingdifferencesbetweenthereceiptordisbursementofcashandtherecordingofrevenueorexpenses.Forexample,ifwehandletransactionsonacashbasis,onlycashtransactionsduringtheyeararerecorded.Consequently,ifacompany'semployeesarepaideverytwoweeksandtheendofanaccountingperiodoccursinthemiddleofthesetwoweeks,neitherliabilitynorexpensehasbeenrecordedforthelastweek.Tobringtheaccountsuptodateforthepreparationoffinancialstatements,boththewageexpenseandthewageliabilityaccountsneedtobeincreased.Anecessarystepintheaccountingprocess,then,istheadjustmentofallaccountstoanaccrualbasisandtheirsubsequentpostingtothegeneralledger.Adjustingentriesarethereforenecessarytoachieveapropermatchingofrevenuesandexpensesinthedeterminationofnetincomeforthecurrentperiodandtoachieveanaccuratestatementoftheassetsandequitiesexistingattheendoftheperiod.AdjustmentprinciplesTherevenuerecognitionprincipleThematchingprincipleWhattoadjust?Eachadjustingentryaffectsbotharealaccount(assets,liability,orowner'sequity)andanominalorincomestatementaccount(revenueorexpense).Thefourbasictypesofadjustingentriesare:1.deferredexpensesthatbenefitsmorethanoneperiod:forexample,prepaidexpenses(e.g.prepaidinsurance,rent)areexpensespaidinadvanceandrecordedasassetsbeforetheyareusedorconsumed.Whentheseassetsareconsumed,expensesshouldberecognized:adebittoanexpenseaccountandacredittoanassetaccount.Anotherexampleisdepreciation.Thecostofalong-termassetisallocatedasanexpenseoveritsusefullife.Attheendofeachperioddepreciationexpenseisrecordedthroughanadjustingentry:adebittoadepreciationexpenseaccountandacredittoanaccumulateddepreciationaccount(acontraaccountusedtototalthepastdepreciationexpensesonspecificlong-termassets).2.accruedexpensesthatincurredbutnotyetpaidorrecorded:examplesareemployeesalariesandinterestonborrowedmoney.Attheendoftheaccountingperiod,theaccruedexpenseisrecordedthroughanadjustingentry:adebittoanexpenseaccount(i.e.SalariesExpense)andacredittoaliabilityaccount(i.e.SalariesPayable).3.accruedrevenuesthatearnedbutnotyetreceivedorrecorded:alsocalledunrecordedrevenues.Examplesincludeinterestrevenues,rentrevenues,etc.Suchrevenuesaccumulatewiththepassingoftime,butthefirmmayhavenotreceivedthepaymentorbilledtheclient.Anadjustingentryshouldbe:adebittoanassetaccount(i.e.AccountsReceivable)andacredittoarevenueaccount(i.e.InterestRevenue).4.unearnedrevenuesthatarerevenuesreceivedincashbeforedeliveryofgoods/services:examplesaremagazinesubscriptionfees,customerdepositsforservices.These"revenues"arenotearnedyetandthusshouldberecordedasliabilities.Anadjustingentryshouldbe:adebittoaliabilityaccount(i.e.UnearnedRevenue)andacredittoarevenueaccount(i.e.Revenue).UserCommentsPostedbyGiGi@2004-01-2906:26:22.accrualsystem!!!definitionPostedbyGina@2004-02-0322:17:33.accrualbasedaccountingrecognizestheimpactofabusinesseventasitoccurs,regardlessofwhethertransactionaffectedcashPostedbyGina@2004-02-0322:20:20.RevenuePrinciple:basisforrecordingrevenues(ietellswhentorecordrevenueandtheamounts).MatchingPrinciple:basisforrecordingexpensis(iedirectiontoIDallexpensesduringtheperiod,measurethem,andmatchthemagainsttherevenuesearnedinthatperiod).c.explainwhytheaccrualbasisofaccountingproducesmoreusefulincomestatementsandbalancesheetsthanthecashbasis.Revenueissomethingearnedthroughthesaleofgoodsorservices.Notallcashreceiptsarerevenues;forexample,cashreceivedthroughaloanisnotrevenue.Expensesarethecostofgoodsorservicesusedtogeneraterevenues.Notallcashpaymentsareexpenses;forexample,cashdividendspaidtostockholdersarenotexpenses.Netincomeisthedifferencebetweenrevenuesandexpenses.Itisreportedontheincomestatement,andisthefocusinevaluatingafirm'sprofitability.Mostcompaniesusetheaccrualbasisaccounting,recognizingrevenuewhenitisearned(thegoodsaresoldortheservicesperformed)andrecognizingexpensesintheperiodincurred,withoutregardtothetimeofreceiptorpaymentofcash.Netincomeisrevenueearnedminusexpensesincurred.Underthestrictcashbasisaccounting,revenueisrecordedonlywhenthecashisreceivedandexpensesarerecordedonlywhenthecashispaid.Netincomeiscashrevenueminuscashexpenses.Thematchingprincipleisignoredhere,resultinginconformitywithgenerallyacceptedaccountingprinciples.Today'seconomyisconsiderablymorelubricatedbycreditthanbycash.Andtheaccrualbasis,notthecashbasis,recognizesallaspectsofthecreditphenomenon.Investors,creditors,andotherdecisionmakersseektimelyinformationaboutanenterprise'sfuturecashflows.Accrualbasisaccountingprovidesthisinformationbyreportingthecashinflowsandoutflowsassociatedwithearningsactivitiesassoonasthesecashflowscanbeestimatedwithanacceptabledegreeofcertainty.Receivablesandpayablesareforecastersoffuturecashinflowsandoutflows.Inotherwords,accrualbasisaccountingaidsinpredictingfuturecashflowsbyreportingtransactionsandothereventswithcashconsequencesatthetimethetransactionsandeventsoccur,ratherthanwhenthecashisreceivedandpaid.Accrualaccountinggenerallyprovidesabetterindicationofperformancethancashbasisofaccountingsinceitincreasesthecomparabilityofincomestatementsandbalancesheetsacrossperiods.B.FinancialReportingandAnalysisa.defineeachassetandliabilitycategoryonthebalancesheetandprepareaclassifiedbalancesheet.Thinkofthebalancesheetasaphotoofthebusinessataspecificpointintime.Itpresentstheassets,liabilities,andtheequityownershipofabusinessentityasofaspecificdate.Assetsaretheeconomicresourcescontrolledbythefirm.Liabilitiesarethefinancialobligationsthatthefirmmustfulfillinthefuture.Liabilitiesaretypicallyfulfilledbypaymentofcash.Theyrepresentthesourceoffinancingprovidedtothefirmbythecreditors.EquityOwnershipistheowner'sinvestmentsandthetotalearningsretainedfromthecommencementofthefirm.Equityrepresentsthesourceoffinancingprovidedtothefirmbytheowners.Balancesheetaccountsareclassifiedsothatsimilaritemsaregroupedtogethertoarriveatsignificantsubtotals.Furthermore,thematerialisarrangedsothatimportantrelationshipsareshown.Thetablebelowindicatesthegeneralformatofbalancesheetpresentation:BalanceSheetClassificationsAssetsLiabilitiesandOwner'sEquityCurrentAssetsCurrentliabilitiesLong-terminvestmentsLong-termdebtProperty,planandequipmentOwner'sequityIntangibleassetsCapitalstockOtherassetsAdditionalpaid-incapitalRetainedearningsCurrentAssets:Theyarecashandotherassetsexpectedtobeconvertedintocash,sold,orconsumedeitherinoneyearorintheoperatingcycle,whicheverislonger.Theoperatingcycleistheaveragetimebetweentheacquisitionofmaterialsandsuppliesandtherealizationofcashthroughsalesoftheproductforwhichthematerialsandsupplieswereacquired.Thecycleoperatesfromcashthroughinventory,production,andreceivablesbacktocash.Wherethereareseveraloperatingcycleswithinoneyear,theone-yearperiodisused.Iftheoperatingcycleismorethanoneyear,thelongerperiodisused.Currentassetsarepresentedinthebalancesheetinorderofliquidity.Thefivemajoritemsfoundinthecurrentassetsectionare:Cash:valuedatitsstatedvalue.Cashrestrictedforpurposeotherthanpaymentofcurrentobligationsorforuseincurrentoperationsshouldbeexcludedfromthecurrentassetsection.Marketablesecurities:Alsoreferredtoasmarketablesecurities.Valuedatcostorlowerofcostandmarket.Accountsreceivables:amountsowedtothefirmbyitscustomersforgoodsandservicesdelivered.Valuedattheestimatedamountcollectible.Inventories:Productsthatwillbesoldinthenormalcourseofbusiness.Prepaidexpenses:theyareexpendituresalreadymadeforbenefits(usuallyservices)tobereceivedwithinoneyearortheoperatingcycle,whicheverislonger.Typicalexamplesareprepaidrent,advertising,taxes,insurancepolicy,andofficeoroperatingsupplies.Theyarereportedattheamountofun-expiredorunconsumedcost.Long-TermInvestments:Oftenreferredtosimplyasinvestments,theyaretobeheldformanyyears,andarenotacquiredwiththeintentionofdisposingoftheminthenearfuture.Investmentsinsecuritiessuchasbonds,commonstock,orlong-termnotesthatmanagementdoesnotintendtosellwithinoneyear.Investmentsintangiblefixedassetsnotcurrentlyusedinoperations,suchaslandheldforspeculation.Investmentssetasideinspecialfundssuchasasinkingfund,pensionfund,orplantexpansionfund.Thecashsurrendervalueoflifeinsuranceisincludedhere.Investmentsinnon-consolidatedsubsidiariesoraffiliatedcompanies.Property,Plant,andEquipment:Theyarepropertiesofadurablenatureusedintheregularoperationsofthebusiness.Withtheexceptionofland,mostassetsareeitherdepreciable(suchasbuilding)orconsumable.IntangibleAssets:Theylackphysicalsubstanceandusuallyhaveahighdegreeofuncertaintyconcerningtheirfuturebenefits.Theyincludepatents,copyrights,franchises,goodwill,trademarks,tradenames,secretprocesses,andorganizationcosts.Generally,alloftheseintangiblesarewrittenoff(amortized)toexpenseover5to40years.OtherAssets:Theyvarywidelyinpractice.Examplesincludedeferredcharges(long-termprepaidexpenses),non-currentreceivables,intangibleassets,assetsinspecialfunds,andadvancestosubsidiaries.CurrentLiabilities:Theyareobligationsthatarereasonablyexpectedtobeliquidatedeitherthroughtheuseofcurrentassetsorthecreationofothercurrentliabilitieswithinoneyearorwithintheoperatingcycle,whicheverislonger.Theyarenotreportedinanyconsistentorder.Atypicalorderis:Notespayable,accountspayable,accrueditems(e.g.accruedwarrantycosts,compensationandbenefits)incometaxespayable,currentmaturitiesoflong-termdebt,etc.Theexcessoftotalcurrentassetsovertotalcurrentliabilitiesisreferredtoasworkingcapital.Itrepresentsthenetamountofacompany'srelativelyliquidresources;thatis,itistheliquidbuffer,ormarginofsafety,availabletomeetthefinancialdemandsoftheoperatingcycle.Long-TermLiabilitiesTheyareobligationsthatarenotreasonablyexpectedtobeliquidatedwithinthenormaloperatingcyclebut,instead,atsomedatebeyondthattime.Bondspayable,notespayable,deferredincometaxes,leaseobligations,andpensionobligationsarethemostcommonlong-termliabilities.Generallytheyareofthreetypes:Obligationsarisingfromspecificfinancingsituations,suchasissuanceofbonds,long-termleaseobligations,andlong-termnotespayable.Obligationsarisingfromtheordinaryoperationsoftheenterprisesuchaspensionobligationsanddeferredincometaxliabilities.Obligationsthataredependentupontheoccurrenceornon-occurrenceofoneormorefutureeventstoconfirmtheamountpayable,orthepayee,orthedatepayable,suchasserviceorproductwarrantiesandothercontingencies.Owner'sEquity:Thecomplexityofcapitalstockagreementsandthevariousrestrictionsonresidualequityimposedbystatecorporationlaws,liabilityagreements,andboardsofdirectorsmaketheowner'sequitysectiononeofthemostdifficultsectionstoprepareandunderstand.Thesectionisusuallydividedintothreeparts:Capitalstock:theparorstatedvalueofthesharesissued.Additionalpaid-incapital:theexcessofamountspaidinovertheparorstatedvalue.Retainedearnings:thecorporation'sundistributedearnings.b.defineeachcomponentofamulti-stepincomestatementandprepareamulti-stepincomestatement.Theincomestatementmeasuresthesuccessofbusinessoperationsforagivenperiodoftime.Asingle-stepincomestatementgroupsrevenuestogetherandexpensestogether,withoutfurtherclassifyingeachofthegroups.Amulti-stepincomestatementmakesfurtherclassificationstoprovideadditionalimportantrevenueandexpensedata.Theseclassificationsmaketheincomestatementmoreinformativeanduseful.Itisrecommendedbecause:itrecognizesaseparationofoperatingtransactionsfromnon-operatingtransactions;itmatchescostsandexpenseswithrelatedrevenues;ithighlightscertainintermediatecomponentsofincomethatareusedforthecomputationofratiosusedtoassesstheperformanceoftheenterprise.Components:Operatingsection:areportoftherevenuesandexpensesofthecompany'sprincipaloperations.oSalesorrevenuesection:asubsectionpresentingsales,discounts,allowances,returns,andotherrelatedinformation,andtoarriveatthenetamountofsalesrevenue.oCostofgoodssoldsection:asubsectionthatshowsthecostofgoodsthatweresoldtoproductthesales.oSellingexpense:asubsectionthatlistsexpensesresultingfromthecompany'seffortstomakesales.oAdministrativeorgeneralexpenses:asubsectionreportingexpensesofgeneraladministration.Non-operatingsection:areportofrevenuesandexpensesresultingfromsecondaryorauxiliaryactivitiesofthecompany.Inaddition,specialgainsandlossesthatareinfrequentorunusual,butnotboth,arenormallyreportedinthissection.Generallytheseitemsbreakdownintotwomainsubsections:oOtherrevenuesandgains:Alistoftherevenuesearnedorgainsincurred,generallynetofrelatedexpenses,fromnon-operatingtransactions.oOtherexpensesandlosses:Alistoftheexpensesorlossesincurred,generallynetofanyrelatedincomes,fromnon-operatingtransactions.Incometaxes:Ashortsectionreportingfederalandstatetaxesleviedonincomefromcontinuingoperations.Discontinuedoperations:materialgainsorlossesresultingfromthedispositionofasegmentofthebusiness.Extraordinaryitems:UnusualANDinfrequentmaterialgainsandlosses.Cumulativeeffectofachangeinaccountingprinciple.Earningspershare.C.Short-TermLiquidAssetsa.describehowtochoosetheappropriateaccountingmethodforinvestmentsecuritiesandexplainhowfair(market)valuegainsandlossesonsuchinvestmentsarereported.Short-terminvestments,alsocalledmarketablesecurities,ordinarilyconsistofshort-termpaper(certificatesofdeposit,treasurybills,andcommercialpaper),marketabledebtsecurities(governmentandcorporatebonds),andmarketableequitysecurities(preferredandcommonstock)acquiredwithcashnotimmediatelyneededinoperations.Theymustbe:readilymarketable:canbesoldquiteeasily.intendedtobeconvertedintocashasneededwithinoneyearortheoperatingcycle,whicheverislonger.Securitiesthatareintendedtobeheldformorethanoneyeararecalledlong-terminvestments.Therearetwotypesofgainsandlosses:Realizedgainsandlosses:thedifferencebetweenthefairmarketvalueandthecostofthesecuritieswhentheyaresold.Unrealizedholdinggainsandlosses:thedifferencebetweenthefairmarketvalueandthecostofthesecuritieswhentheyarestillheldbythefirm.Thegainsandlossesareunrealizedbecausesecuritieshavenotbeensold.Ingeneral:Whensecuritiesarepurchased,theyarerecordedatcost.Thecostofthesecuritiesincludespurchasepriceandanybroker'sfeesorfeespaidtoacquiresecurities.Interestanddividendsgenerallyarerecognizedasrevenuewhentheyarereceived.Whensecuritiesaresold,thecostiscomparedtothesalesprice,andthedifferenceisrecordedasagainoraloss.Attheendofeachaccountingperiod,thebalanceofthecontrollingaccountisadjustedtoreflectthecurrentmarketvalueofthesecuritiesowned.However,differentcategoriesofinvestmentsecuritieshavedifferenttreatmentonunrealizedholdinggainsandlosses.Held-to-maturitysecurities:Debtsecuritiesthatmanagementintendstoholdtotheirmaturitydate.Atyearend,theyarereportedatcostadjustedfortheeffectofinterest(debitthesecuritiesaccountandcreditinterestincomeaccount),andunrealizedholdinggainsandlossesarenotrecognized.Tradingsecurities:Debtandequitysecuritiesboughtandheldmainlyforsaleintheneartermtogenerateincomeonpricechanges.Atyearend,theyarereportedattheirfairmarketvalue.Anyunrealizedholdinggainsorlossesarerecognizedonthefirm'sincomestatementaspartofthenetincome.Whentheyaresold,therealizedgainsorlosseswillalsoappearontheincomestatement.Realizedgainsandlossesarenotaffectedbyanyunrealizedgainsorlossesrecognizedbefore.Example:1.12/1/2002,100sharespurchasedat$80persharefortradingpurposes:Entry:TradingSecurities8000(Debit)|Cash8000(Credit)2.12/31/2002,thepriceis$60pershare.Entry:UnrealizedLossonInvestments2000(Debit)|AllowancetoAdjustShort-TermInvestmentstoMarket2000(Credit).Theallowanceaccountisshownonthebalancesheetasacontra-assetaccount:TradingSecurities(atcost)8000AllowanceAccount(2000)TradingSecurities(atmarket)6000The$2000unrealizedlossisreportedintheincomestatementfor2002.3.06/12/2003,100sharessoldat$120pershare.Entry:Cash12000(Debit)|TradingSecurities8000(Credit)|RealizedGainonInvestment4000(Credit)The$4000realizedgainisreportedintheincomestatementof2003.Available-for-salesecurities:Debtandequitysecuritiesnotclassifiedasheld-to-maturityortradingsecurities.Theunrealizedgainsandlossesarereportedinthebalancesheetasanadjustmenttotheshareholders'equity(incontrast,theunrealizedgainsorlossesoftradingsecuritiesarereportedintheincomestatementaspartofthenetincome).Otherthanthat,theyareaccountedforinthesamewayastradingsecurities.Example:1.12/1/2002,100sharespurchasedat$80persharefortradingpurposes:Entry:Available-for-SaleSecurities8000(Debit)|Cash8000(Credit)2.12/31/2002,thepriceis$60pershare.Entry:UnrealizedLossonInvestments2000-Equity(Debit)|AllowancetoAdjustShort-TermInvestmentstoMarket2000(Credit).Theallowanceaccountisshownonthebalancesheetasacontra-assetaccount:Available-for-SaleSecurities(atcost)8000AllowanceAccount(2000)Available-for-SaleSecurities(atmarket)6000The$2000unrealizedlossisreportedinthebalancesheetfor2002asacomponentofstockholder'sequity.3.06/12/2003,100sharessoldat$120pershare.Entry:Cash12000(Debit)|TradingSecurities8000(Credit)|RealizedGainonInvestment4000(Credit)The$4000realizedgainisreportedintheincomestatementof2003.UserCommentsPostedbyshasha@2003-11-1504:02:09.AFS(available-for-sale)iskindo