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Interpreting Financial Statements CHAPTER 1 McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
Key Points ,[object Object],[object Object],[object Object]
The Cash Flow Cycle ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Figure 1.1 The Cash Flow-Production Cycle
More Questions ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Balance Sheet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
TABLE 1-1 Worldwide Sports Financial Transactions 2008  ($ thousands)
Questions? ,[object Object],[object Object],[object Object],[object Object],[object Object]
FIGURE 1.2 Ties among Financial Statements
TABLE 1-2 Scotts Miracle-Gro Co., Balance Sheets  ($ millions)
TABLE 1-3 Scotts Miracle-Gro Co., Income Statement  ($ millions)
Measuring Earnings ,[object Object],[object Object],[object Object],[object Object],[object Object]
Tax Arithmetic ,[object Object],[object Object],[object Object],[object Object]
Check Out the Numbers ,[object Object],[object Object],[object Object],[object Object],[object Object]
R&D ,[object Object],[object Object],[object Object],[object Object]
Sources & Uses ,[object Object],[object Object],[object Object],[object Object]
TABLE 1-4 Scotts Miracle-Gro Co., Sources and Uses Statement, 2007  ($ millions)
Statement of Cash Flows ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cash Flow and Net Income ,[object Object],[object Object],[object Object],[object Object],[object Object]
TABLE 1-5 Scotts Miracle-Gro Co., Cash Flow Statement, 2007  ($ millions)
Fair Value Accounting ,[object Object],[object Object],[object Object],[object Object]
TABLE 1-6 The Book Value of Equity is a Poor Surrogate for the Market Value of Equity,  December 31, 2007
Goodwill ,[object Object],[object Object],[object Object]
Economic Income and Accounting Income ,[object Object],[object Object],[object Object]

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Chap001

Notes de l'éditeur

  1. 1/ At my point, the production is in the left side from the circle, and when starting the operation, most companies must have production first to earn money. 2/ initial cash that means the owner’s equity. 3/ working capital is some kinda cash that support for operation, like tax, changes in equity, changes in liabilities, interest, etc. 4/ the investment capital is some kinda money that support for buying tangible assets, that mainly in the left side in the circle.
  2. 1/ the depreciation is concerned to assets while amortization is concerned to some kinda loans. And depreciation is relevant to deduct assets thorough its operation. In business’s views, they quite like depreciation, coz it will influenced to income tax. 2/ the AP is accounts payable and it fit for the left side like buying fixed assets and production. 3/ the profits and the cash flow does not the same cos the profits are burdened