Manajemen Keuangan sub risiko risk (2)

• _{Ryan Anggara} • _Mahasiswa

• _Unisba

Ch. 2 -

Understanding Financial

Statements, Taxes, and Cash Flows



SALES

- EXPENSES

= PROFIT

SALES

- EXPENSES

= PROFIT

Income Statement

Income Statement

SALES

- EXPENSES

= PROFIT

Income Statement

SALES

- EXPENSES

= PROFIT

Income Statement

SALES

- EXPENSES

= PROFIT

•_{Cost of Goods Sold}

Income Statement

SALES

- EXPENSES

= PROFIT

•_{Cost of Goods Sold} •_{Operating Expenses}

Income Statement

SALES

- EXPENSES

= PROFIT

•_{Cost of Goods Sold} •_{Operating Expenses}

(marketing, administrative)

Income Statement

SALES

- EXPENSES

= PROFIT

•_{Cost of Goods Sold} •_{Operating Expenses}

(marketing, administrative)

SALES

- Cost of Goods Sold GROSS PROFIT

- Preferred Stock Dividends

- NET INCOME AVAILABLE

TO COMMON STOCKHOLDERS

SALES

- Cost of Goods Sold GROSS PROFIT - Preferred Stock Dividends

- NET INCOME AVAILABLE

TO COMMON STOCKHOLDERS

SALES

- Cost of Goods Sold GROSS PROFIT

- Operating Expenses OPERATING INCOME (EBIT)

- Interest Expense

EARNINGS BEFORE TAXES (EBT) - Income Taxes

EARNINGS AFTER TAXES (EAT) - Preferred Stock Dividends

- NET INCOME AVAILABLE

TO COMMON STOCKHOLDERS

Balance Sheet

Total Assets =

Outstanding

Debt

+

Balance Sheet

Balance Sheet

Balance Sheet

Assets Liabilities (Debt) & Equity

Current Assets

Assets

• _{Current Assets: assets that are relatively}

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

receivable, inventories, prepaid expenses.

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

receivable, inventories, prepaid expenses.

• _{Fixed Assets: machinery}

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

receivable, inventories, prepaid expenses.

• _{Fixed Assets: machinery and equipment,}

buildings, and land.

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

receivable, inventories, prepaid expenses.

• _{Fixed Assets: machinery and equipment,}

buildings, and land.

• _{Other Assets: any asset that is not a current}

Assets

• _{Current Assets: assets that are relatively}

liquid, and are expected to be converted to cash within a year.

– _{Cash, marketable securities, accounts}

receivable, inventories, prepaid expenses.

• _{Fixed Assets: machinery and equipment,}

buildings, and land.

• _{Other Assets: any asset that is not a current}

asset or fixed asset.

Financing

• _{Debt Capital: financing provided by a}

Financing

• _{Debt Capital: financing provided by a}

creditor.

Financing

• _{Debt Capital: financing provided by a}

creditor.

• _{Short-term debt: borrowed money that}

Financing

• _{Debt Capital: financing provided by a}

creditor.

• _{Short-term debt: borrowed money that}

must be repaid within the next 12 months.

– _{Accounts payable, other payables such as}

Financing

• _{Debt Capital: financing provided by a}

creditor.

• _{Short-term debt: borrowed money that}

must be repaid within the next 12 months.

– _{Accounts payable, other payables such as}

interest or taxes payable, accrued expenses, short-term notes.

Financing

• _{Debt Capital: financing provided by a}

creditor.

• _{Short-term debt: borrowed money that}

must be repaid within the next 12 months.

– _{Accounts payable, other payables such as}

interest or taxes payable, accrued expenses, short-term notes.

• _{Long-term debt: loans from banks or other}

Financing

• _{Equity Capital: shareholders’ investment in}

Financing

• _{Equity Capital: shareholders’ investment in}

the firm.

Financing

• _{Equity Capital: shareholders’ investment in}

the firm.

• _{Preferred Stockholders: receive fixed}

dividends, and have higher priority than

Financing

• _{Equity Capital: shareholders’ investment in}

the firm.

• _{Preferred Stockholders: received fixed}

dividends, and have higher priority than

common stockholders in event of liquidation of the firm.

Financing

• _{Equity Capital: shareholders’ investment in}

the firm.

• _{Preferred Stockholders: received fixed}

dividends, and have higher priority than

common stockholders in event of liquidation of the firm.

• _{Common Stockholders: residual owners of}

Corporate Income Tax Rates

$10,000,001 - $15,000,000 35%

Free Cash Flows

Free Cash Flows

Firm’s Operating

Free cash flows

=

Firm’s Financing Free cash flows

Cash flows generated through the firm’s

Calculating Free Cash Flows:

An Operating Perspective

After-tax cash flow from operations

less

investment in net operating

working capital

less

Calculating Free Cash Flows:

An Operating Perspective

After-tax cash flow from operations

less

investment in net operating

working capital

less

investments in fixed and other assets

Operating income + depreciation

Calculating Free Cash Flows:

An Operating Perspective

After-tax cash flow from operations

less

investment in net operating

working capital

less

investments in fixed and other assets

[Change in current assets]

-

Calculating Free Cash Flows:

An Operating Perspective

After-tax cash flow from operations

less

investment in net operating

working capital

less

investments in fixed and other assets

Change in gross fixed assets, and any other assets that are on the

Calculating Free Cash Flows:

A Financing Perspective

Interest payments to creditors

- change in debt principal

- dividends paid to stockholders

- change in stock

•

_{Space Cow Computer has sales of}

_$32

million

, cost of goods sold at

60%

of

sales, cash operating expenses of

$2.4

million

, and

$1.4 million

in depreciation

expense. The firm has

$12 million

in

9.5%

bonds outstanding. The firm will

pay

$500,000

in dividends to its

common stock holders.

Sales

$32,000,000

Cost of Goods Sold

(19,200,000)

Operating Expenses

(2,400,000)

Depreciation Expense

(1,400,000)

EBIT or NOI

9,000,000

Interest Expense

(1,140,000)

Income tax rate tax payment

$50,000 x .15 =

$ 7,500

$25,000 x .25 =

6,250

$25,000 x .34 =

8,500

$235,000 x .39 =

91,650

$7,525,000 x .34 =

2,558,500

Total Tax payment

$2,672,400