2-1 CHAPTER 2 Financial Statements Cash Flow, and Taxes ■Ba| ance sheet ■ Income statement Statement of cash flows Accounting income versus cash flow MVAand Eva ■ Persona| taxes Corporate taxes Copy right C 2002 by Harcourt, Inc. All rights reserved
2 - 1 Copyright © 2002 by Harcourt, Inc. All rights reserved. ◼Balance sheet ◼Income statement ◼Statement of cash flows ◼Accounting income versus cash flow ◼MVA and EVA ◼Personal taxes ◼Corporate taxes CHAPTER 2 Financial Statements, Cash Flow, and Taxes
2-2 Balance sheets: Assets 2001 2000 Cash 7,282 9,000 Short -term iny 0 48.600 AR 632,160351,200 Inventories 1287,360 715200 Total Ca 19268021,124.000 Gross FA 202,950491,000 Less: Depr. 263,160 146200 Net Fa 939790 344.800 Total assets 2.8665921468800 Copy right C 2002 by Harcourt, Inc. All rights reserved
2 - 2 Copyright © 2002 by Harcourt, Inc. All rights reserved. 2001 2000 Cash 7,282 9,000 Short-term inv. 0 48,600 AR 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: Depr. 263,160 146,200 Net FA 939,790 344,800 Total assets 2,866,592 1,468,800 Balance Sheets: Assets
2-3 Liabilities and Equity 2001 2000 Accts payable 524.160145600 Notes payable 720.000200,000 Accruals 489600136000 Total CL 3733760481,600 Long-term debt 1,000,000 323, 432 Common stock 460,000460,000 Retained earnings )203768 Total equity 13283266376 Total l&E 2866592 680 Copy right C 2002 by Harcourt, Inc. All rights reserved
2 - 3 Copyright © 2002 by Harcourt, Inc. All rights reserved. 1,733,760 Liabilities and Equity 2001 2000 Accts payable 524,160 145,600 Notes payable 720,000 200,000 Accruals 489,600 136,000 Total CL 481,600 Long-term debt 1,000,000 323,432 Common stock 460,000 460,000 Retained earnings (327,168) 203,768 Total equity 132,832 663,768 Total L&E 2,866,592 1,468,800
2-4 Income statement 2001 2000 Sales 58344003,432,000 COGS 5728,0002,864,000 Other expenses 680.000340.000 Deprec 116960_18900 Tot op. costs 24960322 EBIT (690,560)209100 Interest exp. 76000 62500 EBT (866,560)146,600 Taxes(40%) (346,624)58640 Net income 519936 Copy right C 2002 by Harcourt, Inc. All rights reserved
2 - 4 Copyright © 2002 by Harcourt, Inc. All rights reserved. (519,936) Income Statement Sales 5,834,400 3,432,000 COGS 5,728,000 2,864,000 Other expenses 680,000 340,000 Deprec. 116,960 18,900 Tot. op. costs 6,524,960 3,222,900 EBIT (690,560) 209,100 Interest exp. 176,000 62,500 EBT (866,560) 146,600 Taxes (40%) (346,624) 58,640 Net income 87,960 2001 2000
2-5 Other data 20012000 No, of shares 100,000 100000 EPS ($5199) $088 DPS 0.110 $022 Stock price $225 $850 Lease pmts $40,000 $40,000 Copy right C 2002 by Harcourt, Inc. All rights reserved
2 - 5 Copyright © 2002 by Harcourt, Inc. All rights reserved. Other Data No. of shares 100,000 100,000 EPS ($5.199) $0.88 DPS $0.110 $0.22 Stock price $2.25 $8.50 Lease pmts $40,000 $40,000 2001 2000