财务报表分析与运用 杰拉尔德 课后答案英文版第三章.docx
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财务报表分析与运用杰拉尔德课后答案英文版第三章
Chapter3-Solutions
Overview:
ProblemLengthProblem#’s
{S}1,3
{M}2,7,8,12,13
{L}4-6,9-11,14,15
1.{S}a.PalombaPizzaStores
StatementofCashFlows
YearEndedDecember31,2000
CashFlowsfromOperatingActivities:
CashCollectionsfromCustomers
CashPaymentstoSuppliers
CashPaymentsforSalaries
CashPaymentsforInterest
NetCashfromOperatingActivities
CashFlowsfromInvestingActivities:
SalesofEquipment
PurchaseofEquipment
PurchaseofLand
NetCashforInvestingActivities
CashFlowsfromFinancingActivities:
RetirementofCommonStock
PaymentofDividends
NetCashforFinancingActivities
NetIncreaseinCash
CashatBeginningofYear
CashatEndofYear
$250,000
（85,000）
（45,000）
（10,000）
38,000
（30,000）
（14,000）
（25,000）
（35,000）
$110,000
（6,000）
（60,000）
$44,000
50,000
$94,000
b.CashFlowfromOperations（CFO）measuresthecashgeneratingabilityofoperations,inadditiontoprofitability.Ifusedasameasureofperformance,CFOislesssubjecttodistortionthannetincome.AnalystsusetheCFOasacheckonthequalityofreportedearnings,althoughitisnotasubstitutefornetincome.CompanieswithhighnetincomeandlowCFOmaybeusingoverlyaggressiveincomerecognitiontechniques.Theabilityofafirmtogeneratecashfromoperationsonaconsistentbasisisoneindicationofthefinancialhealthofthefirm.AnalystssearchfortrendsinCFOtoindicatefuturecashconditionsandpotentialliquidityorsolvencyproblems.
CashFlowfromInvestingActivities（CFI）reportshowthefirmisinvestingitsexcesscash.TheanalystmustconsidertheabilityofthefirmtocontinuetogrowandCFIisagoodindicationoftheattitudeofmanagementinthisarea.Thiscomponentoftotalcashflowincludesthecapitalexpendituresmadebymanagementtomaintainandexpandproductivecapacity.DecreasingCFImaybeaforecastofslowerfuturegrowth.
CashFlowfromFinancing（CFF）indicatesthesourcesoffinancingforthefirm.Forfirmsthatrequireexternalsourcesoffinancing（eitherborrowingorequityfinancing）itcommunicatesmanagement'spreferencesregardingfinancialleverage.Debtfinancingindicatesfuturecashrequirementsforprincipalandinterestpayments.Equityfinancingwillcausefutureearningspersharedilution.
Forfirmswhoseoperatingcashflowexceedsinvestmentneeds,CFFindicateswhetherthatexcessisusedtorepaydebt,pay（orincrease）cashdividends,orrepurchaseoutstandingshares.
c.CashpaymentsforinterestshouldbeclassifiedasCFFforpurposesofanalysis.Thisclassificationseparatestheeffectoffinancialleveragedecisionsfromoperatingresults.ItalsofacilitatesthecomparisonofPalombawithotherfirmswhosefinancialleveragediffers.
d.Thechangeincashhasnoanalyticsignificance.Thechangeincash（andhence,thecashbalanceattheendoftheyear）isaproductofmanagementdecisionsregardingfinancing.Forexample,thefirmcanshowalargecashbalancebydrawingonbanklinesjustpriortoyearend.
e.andf.
Thereareanumberofdefinitionsoffreecashflows.
Inthetext,freecashflowisdefinedascashfromoperationslesstheamountofcapitalexpendituresrequiredtomaintainthefirm’scurrentproductivecapacity.Thisdefinitionrequirestheexclusionofcostsofgrowthandacquisitions.However,fewfirmsprovideseparatedisclosuresofexpendituresincurredtomaintainproductivecapacity.Capitalcostsofacquisitionsmaybeobtainedfromproxystatementsandotherdisclosuresofacquisitions（SeeChapter14）.
Inthefinanceliterature,freecashflowsavailabletoequityholdersareoftenmeasuredascashfromoperationslesscapitalexpenditures.Interestpaidisadeductionwhencomputingcashfromoperationsasitispaidtocreditors.Palomba’sfreecashflowavailabletoequityholdersiscalculatedasfollows:
Netcashflowfromoperatingactivitieslessnetcashforinvestingactivities:
$110,000-$6,000=$104,000
Theinvestmentactivitiesdisclosedintheproblemdonotindicateanyacquisitions.
Anotherdefinitionoffreecashflows,whichfocusesonfreecashflowavailabletoallprovidersofcapital,wouldexcludepaymentsforinterest（$10,000inthiscase）anddebt.Thus,Palomba’sfreecashflowavailabletoallprovidersofcapitalwouldbe$114,000.
2.{M}a.
1996
1997
1998
1999
2000
2001
Sales
Baddebtexpense
Netreceivables
Cashcollections1
$---
---
30
$---
$140
7
40
$123
$150
7
50
$133
$165
8
60
$147
$175
10
75
$150
$195
10
95
$165
1Sales-baddebtexpense-increaseinnetreceivables
b.
1997
1998
1999
2000
2001
Baddebtexpense/sales
5.0%
4.7%
4.9%
5.7%
5.1%
Netreceivables/sales
28.6
33.3
36.4
42.8
48.7
Cashcollections/sales
87.9
88.7
89.1
85.7
84.6
c.Thebaddebtprovisiondoesnotseemtobeadequate.From1997-2001salesincreasedbyapproximately40%,whilenetreceivablesmorethandoubled,indicatingthatcollectionshavebeenlagging.Theratioscalculatedinpartbalsoindicatetheproblem.Whilebaddebtexpensehasremainedfairlyconstantat5%ofsalesoverthe5yearperiod,netreceivablesasapercentageofsaleshaveincreasedfrom29%to49%;cashcollectionsrelativetosaleshavedeclined.OtherpossibleexplanationsforthesedataarethatstatedpaymenttermshavelengthenedorthatStengelhasallowedcustomerstodelaypaymentforcompetitivereasons.
3.{S}NiagaraCompany
StatementofCashFlows2001
Cashcollections
Cashinputs
Cashexpenses
Cashinterestpaid
Incometaxespaid
CashfromOperations
Purchaseoffixedassets
CashUsedforInvesting
IncreaseinLTdebt
Decreaseinnotespayable
Dividendspaid
CashUsedforFinancing
NetChangeinCash
CashBalance12/31/00
CashBalance12/31/01
$980
（670）
（75）
（40）
（30）
$165
（150）
（150）
50
（25）
（30）
（5）
$1050
$60
[Sales-AccountsReceivable]
[COGS+Inventory
[Selling&GeneralExpense-AccountsPayable1]
[InterestExpense-InterestPayable]
[IncomeTaxExpense-DeferredTax]
[DepreciationExpense+FixedAssets（net）]
[NetIncome-Retainedearnings]
1Canalsobeusedtocalculatecashinputs,decreasingthatoutflowto$645whileincreasingcashexpensesto$100.
4.{L}a.GCompany
IncomeStatement,2000（$thousands）
Sales
COGS+operating
expenses1
Depreciation
Interest
Taxes
Netincome
$3,841
3,651
15
41
42
$92
[receiptsfromcustomers+increaseinaccountsreceivable]
[payments-increaseininventory+increaseinaccountspayable]
[increaseinaccumulateddepreciation]
[payments]
[payment+increaseintaxpayable]
[check=changeinretainedearningsastherearenodividends]
1Notethatthesetwoitemscannotbecalculatedseparatelyfromtheinformationavailable.
b.MCompany
CashReceiptsandDisbursements,2000（$thousands）
Cashreceiptsfrom:
Customers
Issueofstock
Short-termdebt
Long-termdebt
Total
Cashdisbursements:
COGSandoperatingexpenses
Taxes
Interest
Dividends
PP&Epurchase
Total
Changeincash
$1,807
3
62
96
$1,968
$1,843
3
51
22
33
$1,952
$16
[Sales-increaseinreceivables]
[Increaseinaccount]
[Increaseinliability]
[Increaseinliability]
[COGS+operatingexpense+increaseininventory+decreaseinaccountspayable]
[Expense-increaseintaxpayable]
[Expense]
[Income+increaseinretainedearnings]
[ChangeinPP&E]
Note:
Thisisnotatruereceiptsanddisbursementsscheduleasitshowscertainamounts（e.g.,debt）onanetbasisratherthangross.Suchschedules（andcashflowstatements）preparedfrompublisheddatacanonlyshowsomeamountsnet,unlesssupplementarydataareavailable.
c.ThecashflowstatementsarepresentedwiththeincomestatementforcomparisonpurposesinansweringPartd.
MCompany:
StatementofCashFlows（$thousands）
1996
1997
1998
1999
2000
CFO:
Fromcustomers
Lessoutlaysfor:
COGS/oper.exp.
Interest
Taxes
CFI:
PP&Epurchase
CFF:
Issueofstock
Short-termdebt
Long-termdebt
Dividends
Stockrepurchase
LTdebtrepaid
STdebtrepaid
Changeincash
$1,165
1,130
15
23
$（3）
（14）
5
64
--
（20）
（22）
（2）
--
$25
8
$1,210
1,187
19
19
$（15）
（17）
5
65
--
（21）
（14）
（2）
--
$33
1
$1,327
1,326
16
9
$（24）
（37）
8
--
100
（21）
--
（3）
（8）
$76
15
$1,587
1,672
21
9
$（115）
（30）
3
153
--
（21）
（10）
--
--
$125
（20）
$1,807
1,843
51
3
$（90）
（33）
3
62
96
（22）
--
--
--
$139
16
MCompany:
IncomeStatement（$thousands）
1996
1997
1998
1999
2000
Sales
COGS
Operatingexpense
Depreciation
Interest
Taxes
Total
NetIncome
$1,220
818
298
9
15
38
$1,178
42
$1,265
843
320
10
19
33
$1,225
40
$1,384
931
363
11
16
27
$1,348
36
$1,655
1,125
434
12
21
26
$1,852
37
$1,861
1,277
504
14
51
6
$1,852
9
GCompany:
StatementofCashFlows（$thousands）
1996
1997
1998
1999
2000
CFO:
Fromcustomers
Disbursements:
COGS/Oper.exp.
Interest
Taxes
CFI:
PP&Epurchase
CFF:
Issueofstock
Short-termdebt
Long-termdebt
Changeincash
$1,110
1,214
11
13
$（128）
---
10
80
40
$130
$2
$1,659
1,702
13
15
$（71）
---
---
52
23
$75
$4
$2,163
1,702
23
16
$（93）
（20）
5
91
20
$116
$3
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