【财务管理英文课件】Fund Analysis, Cash-Flow Analysis, and Financial Planning.ppt

Chapter 7
Fund Analysis, Cash-Flow Analysis, and Financial Planning
Fund Analysis, Cash-Flow Analysis, and Financial Planning
Flow of Funds (Sources and Uses) Statement
Accounting Statement of Cash-Flows
Cash-Flow Forecasting
Range of Cash-Flow Estimates
Forecasting Financial Statements
Flow of Funds Statement
Has been replaced by the cash flow statement (1989) in . audited annual reports.
A summary of a firm’s changes in financial position from one period to another; it is also called a sources and uses of funds statement or a statement of changes in financial position.
Why Examine the Flow of Funds Statement
QUESTION?
Why should we bother to understand a Flow of Funds Statement that is no longer required to appear in . audited annual reports?
Why Examine the Flow of Funds Statement
Includes important noncash transactions while the cash flow statement does not.
Is easy to prepare and often preferred by managers for analysis purposes over the plex cash flow statement
Helps you to better understand the cash flow statement, especially if it is prepared under the Indirect method.
The Flow of Funds Statement:
Flow of Funds Statement
All of the firm‘s investments and claims against those investments.
Extends beyond just transactions involving cash.
What are funds?
Sources and Uses Statement
The letters labeling the box stand for Uses, Sources, Assets, and Liabilities (broadly defined). The pluses (minuses) indicate increases (decreases) in assets or liabilities.
A L
- +
+ -
S
U
BWs’ Determination of Sources and Uses
$ 100 - S
410 - S
616 + U
5 --
9 + U
$ 1,140 N/A
930 N/A
(299) N/A
$ 631 + U
50 --
223 --
$ 2,044
Cash and . $ 90
Acct. Rec. 394
Inventories 696
Prepaid Exp 5
Accum Tax Prepay 10
Current Assets $ 1,195
Fixed Assets (***@Cost) 1030
Less: Acc. Depr. (329)
Net Fix. Assets $ 701
Investment, LT 50
Other Assets, LT 223
Total Assets $ 2,169
Assets 19X3 19X2 +/- S/U
BWs’ Determination of Sources and Uses
$ 100 $