对现金流量报表相关目标的量化分析外文翻译.docx

1、对现金流量报表相关目标的量化分析外文翻译Quantitative Analysis of the Target Related to Cash Flow StatementWith the example of the trend analysis method applied to the cash flow statement, the authors study the quantitative analysis method of the target related to cash flow statement. So the statement user can knows the

2、 current and previous financial condition in the enterprises, correctly evaluate the current and future abilities to pay and repay, find out the problems in financial affairs, and scientifically calculate the future financial conditions. An adequate, efficient basis is provided for scientific decisi

3、on.1 Introduction It was America that first decided to replace statement of changes in financial position with cash flow statement. Afterwards, U.K., Australia, Canada and many other countries and areas followed. To emphasize cash flow statement and overcome the shortcomings of statement of changes

4、in financial position, in January, 1987, FASB in America promulgated financial accounting standards announcement No. 95Cash Flow Statement .It requires enterprise to replace the statement of changes in financial position with cash flow statement from July 1988. In September, 1991, British Accounting

5、 Standard Board announced financial statement standard No.l Cash Flow Statement too, demands all enterprises.Concerned with the requirements should prepare cash flow statement. In 1992, International Accounting Standard Board announced lnternational Accounting Standards No.l，required to replace stat

6、ement of changes in financial position with cash flow statement. So now cash flow statement, equity-debt statement, and profit and loss statement have preliminarily formed the new system of financial accounting statement in enterprise on the worldwide scale.2 Cash Flow Statement2.1 Contents of Cash

7、Flow Statement and Its Compilation Purpose Cash flow statement means statement of changes in financial position compiled based on cash and shows operating activities, investment activities and collecting capital activities of the enterprise on account of flow-in and flow-out of cash during a certain

8、 period, and shows all aspects of flow-in and flow-out of cash. It is compiled on the cash basis of accounting and belongs to periodic dynamic statement. The basic purpose of compiling cash flow statement is to provide the information of flow-in and flow-out of cash during a current accounting perio

9、d to shareholders, creditors and other users of the statement to help them correctly make assessment of: The Capability of obtaining net cash flow during the future accounting period; The Capability of repay debts and paying dividend; The Capability of raising funds; .The reason for engendering the

10、difference of net income and net cash flow; and, Investment and raising funds activities affecting and not affecting cash during the current period.2.2 Components of Cash Flow (1) Cash flow-in There are three chief types of economic services flow-in of cash: Reducing other assets except cash adding

11、debts and adding shareholders right. (2) Cash flow- out There are three chief types of economic services flow-out of cash: Adding other assets except cash, reducing debts and reducing shareholders right.2.3 Classification of Cash Flow Cash flow within a certain period is classified into the followin

12、g three types on account of thenature of operation service: The cash flow of operation activities, the cash flow of investment activities and the cash flow of raising funds activities. (1) Cash flow ofoperation activities Operation activities mean the main service of an enterprise and other non-inve

13、stment activities or raising funds activities. It includes: Cash flow-in of operation activities:The input of selling goods and providing labour force; the input of loan interest, stock dividend and bond interest; other input of not belonging to investment activities and raising funds activities.Cas

14、h flow-out of operation activities:The cash of paying to suppliers and providers of labour force; the expenditure of salary; the interest to creditor; the expenditure of tax on income and penalty.(2) Cash flow of investment activitiesInvestment activities mean purchase and selling of long-term asset

15、 and other investments without the cape of cash equivalent. It includes:Cash flow-in of investment activities: recovering loan; selling stocks and bonds issued by other companies; selling fixed assets and other productive assets.Cash flow-out of investment activities: providing loan to other enterpr

16、ises; purchasing stocks and bonds issued by other companies; purchasing fixed assets and other productive assets (including capitalized interest of asset cost).(3) Cash flow of raising funds activitiesRaising funds activities mean the activities to cause the scale and structure of rights and interes

17、t capital and other loan to change. It includes:Cash flow-in of investment activities: issuing stocks., bonds and bill; gaining mortgage loans and all kinds of other long-term and short-term loans.Cash flow-out of investment activities: issuing stock interest in cash; repaying loans; preceding expen

18、diture to creditor (including cash expenditure caused by extended long-term debt).2.4 Structure of Cash Flow StatementThere are two methods to compile cash flow statement: direct method and indirect method. The structure of cash flow statement compiled by the two methods is different. This article r

19、ecommends the basic structure of cash flow Statement compiled by direct method and usually adopted by enterprises. The basic structure of cash flow statement is composed of three parts:Cash flow of operation activities. The data needed by this part may be found in B/S (balancesheet) and income sheet

20、. Cash flow of investment activities. The information needed by this part may be found from the change of current asset account, but the true data need to be adjusted on account of income or loss in income sheet.Cash flow of raising funds activities which may be obtained by analyzing and computing t

21、he change of relevant current liability and shareholders rights and interests account.Non-cash investment and raising funds activities which may be discovered in the supplementary statements to show all aspects of important economic activities.2.5 Compilation of Cash Flow StatementThe information th

22、at is needed for compiling cash flow statement includes: beginning balance sheet, final trial balance, other complementary data,etc. Cash flow statement is compiled on account of the original manuscript.3 Quantitative Analysis of Relevant QuotaQuantitative analysis of cash flow statement is to compa

23、re, analyze and study relevant data of cash flow statement so as to know the financial position of enterprise, find out the trouble in finance, predict the future financial position and provide the basis for scientific decision.The methods of quantitative analysis of cash flow statement usually incl

24、ude trend analysis, structure analysis, rate analysis, comparative analysis and factor analysis. This article only recommends trend analysis applied to cash flow statement.Trend analysis is an analysis method which forecasts future results by studying a number ofcontinual periods- financial statemen

25、t, comparing relevant programs amount of money and analyzing the increase and decrease of some quotas to judge its trend. Applying trend analysis, the user of statement may know the basic trend of relevant program changes, judge whether this trend is advantageous or not and predict the future develo

26、pment of the enterprise.Trend analysis usually computes trend percentages. There are two types of trend percentages:It is illustrated by the cash flow statement of some telecommunication bureau. We compile cash flow statement gathered from 1995 to 1998 of this bureau on account of cash flow statemen

27、ts from 1995 to 1998 of this bureau (statement from 1995 to 1998 omitted). The form of cash flow statement and the data of this bureau in 1998 are shown as in Table 1:Table 1 Cash flow statement of a telecommunication bureauEnterprise： Year:1998 Unit: Thousands of dollars Cash flow Amount 1 Cash flo

28、w of operation Cash flow in: Cash from sales clients 85890 Other operation income (12019) Sub-total f cash flow in 73871 Cash flow out: Paying suppliers (40 871) Paying interests (1 287) Paying other expenses (19 585) Paying income tax (2 546) Sub-total of cash flow out (25 119) Net cash of operatio

29、n 48 7522 Cash flow of investment Cash flow in: Recovery of cash from investment 68 000 Recovery of cash relate to 18 500 investment activities Sub-total of cash flow in 86 500 Cash flow out: Equipment purchasing (66 676) Sub- total of cash flow out (66 676) Net cash of investment 19 8243 Cash flow

30、of raising funds Cash flow in: Cash from loan 36 220 Cash accepting rights and interests 15 081 Sub-total of cash flow in 51 301 Cash flow out: Cash repayed for debts (16 254) Sub- total of cash flow out (16 254) Net cash of raising funds 35 0474 Effects of exchange fluctuations on cash 5 Net increa

31、sed cash flow 103 623 The article only cites the data from 1995 to 1998 to compute the trend percentage by the trend analysis method.Table 2 The total cash flow statementEnterprise: Unit: Thousands of dollars Cash flow 1995 1996 1997 1998 Cash income 187 500 203 136 207 752 211 672Among: cash m- 68

32、465 70 125 71 532 73 871come of operationCash income of 40 680 65 421 76 345 86 500investmentCash income of 78 355 67 590 59 875 51 301raising fundsCash expenditure 62 233 79 765 91 815 108 049including:Cash expenditure 15 908 19 880 22 905 25 119of operationCash expenditure 32 905 40 895 54 690 66 676of investmentCash expenditure 13 420 18 990 14 220 16 254 Of raising funds The data come from the annual accountant statements from 1995 to 1997(omitted