FIN 202

Chap 3: Financial statements, cash flows and taxes

1, Financial statement

- Balance sheet
- Income statement
- Cash flow statement

Các bên liên quan (Stake holders) >< Bên cổ đông(Stockholders)

Purpose:

- Provide stakeholders with a foundation for evaluating the financial health of a firm
- Evaluate a firm’s internal environment
- …………………. interaction with the external environment
- Provide information about the performance of the firm
 Principles of accounting (GAAP) Accrual Basics: Revenue recognition, Cost principle,
Matching principle, Going concern assumption, …

1.1, Balance sheet

- Reflects

+ resources that are owned/controlled by a company

+ Sources of fund -debt/equity

- Assets = Liabilites + shareholders equity

Assets:

current assets <1 year/ 1 kỳ kdoanh

- Cash, accounts receivable, inventory, prepaid expenses (short-term and easily convertible to
cash within a year)
non-current assets >1 year/ kỳ kdoanh
- LT investment (land, stock, bond)
- Tangible Fixed Assets( Tài sản cố định -hữu hình): Land, Building, equipment
- Intangible Fixed Assets(Tài sản vô hình) patents, trademarks, copyrights

Liabilities:

Current liabilities <1 year

- Accounts payable Nợ ng bán và k phải trả lãi>< Note payable Nợ có phát sinh lãi
- Các chi phí phải trả (Accrued expenses) : Salary…
- Unearned revenue (Doanh thu chưa thực hiện) chưa đưa hang hóa, dịch vụ cho khách hang
Non-current liabilities >1 year

Share Holders equity:

- Cổ phiếu thường / cổ phiếu phổ thông (Common Stock)

- Cổ phiếu ưu đãi  Huy động đc bao nhiêu tiền ( Preferred stock)
- Retained earnings ( Lợi nhuận ddc giữ lại sau khi bán ..)
 - Cổ phiếu quỹ (Treasury stock)

4.6 Breckenridge Ski Company has total assets of $422,235,811 and a debt ratio of 29.5

percent. Calculate the company’s debt-to-equity ratio and equity multiplier?

4.7 Norton Company has a debt-to-equity ratio of 1.65, ROA of 11.3 percent, and total equity of

$1,322,796. What are the company’s equity multiplier, debt ratio, and ROE??

4.8 The Rangoon Timber Company has the following ratios:

Net sales/Total assets = 2.23; ROA = 9.69%; ROE = 16.4%

What are Rangoon’s profit margin and debt ratios?