《财务管理专业英语》教学课件03.ppt

3.1 Basics of Annual Reports and Financial Statements 3.2 Balance Sheet 3.3 Income Statement 3.4 Statement of Retained Earnings 3.5 Statement of Cash Flow BASICS OF ANNUAL REPORTS AND FINANCIAL STATEMENTS Corporate Annual Reports Overview of Financial Statements ? balance sheet; ? income statement; ? statement of cash flows; ? statement of retained earnings. BALANCE SHEET An accountant’s snapshot of the firm’s accounting value on a particular date Assets ? Liabilities ? Owners’ equity BALANCE SHEET BALANCE SHEET Historical Cost Current Market Value INCOME STATEMENT A statement of earnings or a profit and loss statement Revenue ? Expenses ? Income INCOME STATEMENT INCOME STATEMENT Net Income versus Cash Flow Accrual accounting Depreciation Taxes STATEMENT OF RETAINED EARNINGS ? the retained earnings balance at the start of the period; ? how much the firm earned (net income); ? how much dividends the firm paid; ? how much net income was reinvested back into the firm (retained earnings); ? any repurchases of the firm’s stock; ? any new issues of the firm’s stock; and ? the retained earnings balance at the close of the period. STATEMENT OF RETAINED EARNINGS STATEMENT OF CASH FLOW Operating Cash Flows Investing Cash Flows Financing Cash Flows STATEMENT OF CASH FLOW