2-Financial Statements, Depreciation and Cash Flow

8/13/2019 2-Financial Statements, Depreciation and Cash Flow

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FINANCIAL STATEMENTS, DEPRECIATION, AND CASH FLOW

The Stockholders Report

Periodically reports must be prepared for;

a.Regulators Indonesian Stock Exchange

b.Creditors to evaluate firms abllity to meet scheduled debt payments

c.Owners to asses firms financial condition for buying or selling the stocks

d.Management regulatory compliance, satisfying creditors, owners and monitoringthe firms performance

Stockholders report annual report required of publicly held corporations thatsummarizes and documents for stock holders the firms financial activities during thepast year

It begins with letter to the stockholders from the firms president followed by the keyfinancial statements and other information about the firm.Letter to stoxkholders the first element of annual stockholders report and theprimary communication from management to the firms owners.

It describes the events that have had the greatest impact on the firm during the year,management philosophy, strategies, and action as well as plans for the coming yearand their anticipated effects on the firms financial condition


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Key Financial Statements:

a. The income statements

b. The balance sheet

c. The statement of retained earnings

d. The statement of cash flow

Depreciation and Cash Flows

Depreciation the systematic charging of a portion of the costs of fixed assets against annualrevenues over time

Financial manager is concerned with cash flow rather than net profit.

To adjust the income statement to show cash flow from operations, all noncash charges must beadded back to the firms net profits

Noncash charges expenses deducted on the income statement that do not involve an actualoutlay of cash during the period Depreciation, amortization, and depletion

Analyzing The Firms Cash FlowThe firms cash flows have been devided into:

a. Operating flows Cash inflows and outflows directly related to production and sale ofproducts

b. Investment flows cash flows associated with purchase and sale of fixed assets andbusiness interests

c. Financing flows cash flows that result from debt and equity financing transaction
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CASH ANDMARKETABLESECURITIES(JANTUNG)

DIANALISIS DARIBANYAK MANANYA

HASIL INI DARI 3KEGIATAN

AccruedWages

Labor

AccountsPayable

Raw Materials

OverheadExpenses

Work inProcess

FinishedGoods

Operating expenses(inc. Dep) and Interest

expenses

Taxes

Sales

AccountReceivables

Fixed Assets

BusinessInterest

Short and Long term Debt

Equity

OPERATING FLOWS INVESTMENT FLOWS

FINANCING FLOWS


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Classifying Sources and Uses of Cash

SOURCES USES

Decrease in any assets Increase in any assets

Increase in any liabilities Decrease in any liabilities

Net profit after taxes Net loss

Depreciation and othet noncash charges Dividend paid

Sale of stocks Repurchase or retairement of stocks

Developing the Statement of Cash Flows Prepare a statement of sources and uses of cash Obtain needed income statement data Properly classify and present relevant data

SEBELUM MEMBUAT LAP. ARUS KAS :-NERACA 2 TAHUN SEBELUMNYA

-INCOME STATEMENT 1 TAHUN SEBELUMNYA

-ANALISIS MANA YANG JADI SUMBER DAN MANA YANG PENDANAAN

ANALISISNYA KE KAS


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Account Account Balance31 Dec

Change Classification

2007 2006 Source UseAssets:

Cash Marketable

Securities Acc Rec Inventories Gross FA Acc Dep

400600

400600

2.5001.300

300200

500900

2.2001.200

100400

-100- 300

300100

100300

100

100400

300

Liabilities: Acc Payable Notes

Payable Accruals Long Term

Debt

700600

100600

500700

200400

200-100

-100200

200

200

100

100

Stockholder sEquity:

PreferedStock

CommonStock at Par

Paid inCapital inExcess of

Par RetainedEarnings

100

120

380

600

100

120

380

500

0

0

0

100

0

0

0

100

0

0

0

1.000 1.000

Net profit after taxes in 2007 $ 180 Depreciation $100


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C as h F l o w s F r o m O p e r a t i n g A c t i v i t i es : Net Profit after taxes Depreciation

Decrease in acc. rec Decrease in inventory Increase in acc payable Decrease in accruals

180100

100300200

(100)

Cashlow provided by operating activities 780C as h F l o w s Fr o m In v e s t m e n t A c t i v i t i es :

Increase in gross FA Changes in businessinterest

(300)

Cashlow provided by investmentactivities (300)C as h F lo w s Fr o m F in a n c i n g A c t i v i t i es :

Decrease in notespayable

Increase in long termdebt

Changes in stockholder sequity

Dividend paid

(100)

200

0

(80)Cashlow provided by financing activities 20Net Increase in Cash and Marketable Securities 500

Baker Corporation Statement of cash flow for the year ended December 31, 2007

2-Financial Statements, Depreciation and Cash Flow

Documents

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