chap4TheStatementofCashFlows(财务报表分析,加州大学MBA).ppt

On Project Report/Readings Market value, use number of shares outstanding, do not use average number of shares outstanding Identify source of data or quotes Common size analysis, show amounts and percentages Only analyze notes that are related to our current lecture Take turn to write the report, do not leave to one person In final exams, I may provide you with raw materials and a sample article from our readings for you to analyze the raw materials and write a similar article. So get familiar with all articles. Again, understand but do not memorize. Firm Names Eagle Eye: Valuation Analysis Strategy Investorium Statement of Cash Flow Cash flow from Operating activities: （营运活动） cash receipts from customers cash disbursed to: suppliers of merchandise employees for salaries Cash flow from investing activities: （投资活动） purchase of buildings, equipments, plants proceeds (进帐）from sales of long term assets Cash flow from financing activities: （融资活动） borrowing/repay long term debts issuing new shares Overview of the Statement of Cash Flows In AOL 2000 balance sheet, cash and cash equivalent increased from $936 millions to $2,490 millions. How? The statement of cash flows … (a) explains the reasons for a change in cash. (b) classifies the reasons for the change as an operating, investing or financing activity. (c) reconciles net income with cash flow from operations. Montgomery Ward b.f. bankrupt The difference between earnings and cash flows I/S Explain change in retained earnings I/S is accrued-based I/S recognize property rights I/S require estimates I/S is an opinion I/S is prone to (易于）manipulation Firms can survive a long string（长串） of negative earnings SCF explain change in cash and cash equivalent N/A SCF emphasize “actual possessment” SCF does not SCF is a fact SCF is so to a much less degree Firms go bankrupt with a long string of negative cash flows (outflow) Cash flow equation A = L + E ΔA =ΔL+ΔE Δcash +Δnon-cash A = ΔL+ ΔE Δcash +Δ curren