Transcript nakman.bilkent.edu.tr

Statement of Cash Flows
“Joan and Joe: A Tale of Woe”
Joe added up profits and went to see Joan,
Assured of obtaining a much-needed loan.
When Joe arrived, he announced with good cheer:
“My firm has had an outstanding year,
And now I need a loan from your bank.”
Eyeing the statements, Joan’s heart sank.
“Your profits are fine,” Joan said to Joe.
“but where, oh where, is your company’s cash flow?
I’m sorry to say: the answer is ‘no’.”
--L. Fraser
(C) 2007 Prentice Hall, Inc.
4-1
Statement of Cash Flows



Provides information about cash
inflows and outflows during an
accounting period
Is developed from Balance Sheet
and Income Statement data
Important as an analytical tool
(C) 2007 Prentice Hall, Inc.
4-2
Why is it important???
•Accrual-based accounting requires reporting
revenues when earned and expenses when
incurred – not when cash is exchanged.
•A company cannot pay employees, creditors
and others with accrual-based net income.
•Valuation models used in financial analysis
are often based on projections of future cash
flows.
(C) 2007 Prentice Hall, Inc.
4-3
Objectives of the Chapter
To explain how the statement of cash
flows is prepared
To interpret the information presented in
the statement
(C) 2007 Prentice Hall, Inc.
4-4
Preparing a
Statement of Cash Flows
(cont.)
Four parts of a statement of cash flows:
1.
2.
3.
4.
Cash
Operating activities
Investing activities
Financing activities
(C) 2007 Prentice Hall, Inc.
4-5
Preparing a
Statement of Cash Flows
(cont.)
Cash includes
Cash & Cash equivalents (short-term
marketable securities):
T-Bills
Notes
Commercial paper
CDs
Certificates
(C) 2007 Prentice Hall, Inc.
Bonds
4-6
Preparing a
Statement of Cash Flows
(cont.)
Operating Activities include


Delivering or producing goods for
sale and providing services
The cash effects of transactions and
other events that enter into the
determination of income
(C) 2007 Prentice Hall, Inc.
4-7
Preparing a
Statement of Cash Flows
(cont.)
Investing Activities include



Acquiring/disposing of securities
that are not cash equivalents
Acquiring/disposing of productive
assets
Lending money/collecting on loans
(C) 2007 Prentice Hall, Inc.
4-8
Preparing a
Statement of Cash Flows
(cont.)
Financing Activities include



Borrowing from creditors/repaying
the principal
Obtaining resources from owners
Providing owners with a return on
investment
(C) 2007 Prentice Hall, Inc.
4-9
Preparing a
Statement of Cash Flows
(cont.)
How Cash Flows During an Accounting Period
Inflows
Outflows
Operating Activities
Investing Activities
Financing Activities
Total Inflows less Total Outflows =
Change in cash for the accounting period
(C) 2007 Prentice Hall, Inc.
4-10
Calculating Cash Flow from
Operating Activities
Firms may use one of two methods
prescribed by the IASB-FASB:
Direct Method
Indirect Method
The two methods yield identical figures for net
cash flow from operating activities
because the underlying accounting
concepts are the same
(C) 2007 Prentice Hall, Inc.
4-11
Calculating Cash Flow from
Operating Activities (cont.)
The Direct Method
Shows
 cash collections from customers
 interest and dividends collected
 other operating cash receipts
 cash paid to suppliers and employees
 interest paid
 taxes paid
 other operating cash payments
(C) 2007 Prentice Hall, Inc.
4-12
Calculating Cash Flow from
Operating Activities (cont.)
The Indirect Method
Starts with net income and adjusts for
 deferrals
 accruals
 noncash items, such as depreciation and
amortization
 nonoperating items, such as gains and
losses on asset sales
(C) 2007 Prentice Hall, Inc.
4-13
Calculating Cash Flow from
Operating Activities (cont.)
The Indirect Method
593 firms out of 600 (99%) used the
indirect method in 2003 according
to Accounting Trends and
Techniques
(C) 2007 Prentice Hall, Inc.
4-14
Preparing a
Statement of Cash Flows
(cont.)
First Step:
Look at changes in balance sheet accounts
from beginning to end of accounting
period
Next Step:
Transfer the account changes to the
appropriate area of a statement of cash
flows
(C) 2007 Prentice Hall, Inc.
4-15
Preparing a
Statement of Cash Flows
(cont.)
Inflow
- Asset account
Outflow
+ Asset account
+ Liability account
- Liability account
+ Equity account
- Equity account
(C) 2007 Prentice Hall, Inc.
4-16
(C) 2007 Prentice Hall, Inc.
4-17
31.12.2009
40.000
48.000
43.000
19.000
150.000
Cash
Accounts Receivable, net
Inventories
Prepaid Expenses
Total Current Assets
Property, plant & equipment
Accumulated Depreciation
Property, plant & equipment, net
Long-term Investments
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Long-term debt
Deferred tax liability
Total Liabilities
Share Capital
Retained Earnings
(C) 2007
Prentice
Hall, Inc.
Total
Liabilities
and Equity
67.000
41.000
26.000
90.000
266.000
31.12.2008
24.000
41.500
34.500
15.000
115.000
61.000
- 23.000
38.000
89.000
242.000
31.12.2009
13.000
55.000
68.000
31.12.2008
11.000
71.000
82.000
25.000
4.000
97.000
8.000
3.500
93.500
112.000
57.000
266.000
97.000
51.500
242.000
4-18
31.12.2009
40.000
48.000
43.000
19.000
150.000
Cash
Accounts Receivable, net
Inventories
Prepaid Expenses
Total Current Assets
Property, plant & equipment
Accumulated Depreciation
Property, plant & equipment, net
Long-term Investments
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Long-term debt
Deferred tax liability
Total Liabilities
Share Capital
Retained Earnings
Total
Liabilities
(C) 2007
Prentice
Hall, Inc. and Equity
67.000
41.000
26.000
90.000
266.000
31.12.2008
24.000
41.500
34.500
15.000
115.000
61.000
- 23.000
38.000
89.000
242.000
Cash
Oper
Oper
Oper
Invest
non cash
Invest
Invest
31.12.2009
13.000
55.000
68.000
31.12.2008
11.000
71.000
82.000
25.000
4.000
97.000
8.000
3.500
93.500
Finance
Oper
112.000
57.000
266.000
97.000
51.500
242.000
Finance
Finance
Oper
Oper
4-19
Cash
Accounts Receivable, net
Inventories
Prepaid Expenses
Total Current Assets
Property, plant & equipment
Accumulated Depreciation
Property, plant & equipment, net
Long-term Investments
Total Assets
Accounts Payable
Accrued Liabilities
Total Current Liabilities
Long-term debt
Deferred tax liability
Total Liabilities
Share Capital
Retained Earnings
Total
Liabilities
and Equity
(C)
2007 Prentice
Hall, Inc.
31.12.2009
40.000
48.000
43.000
19.000
150.000
31.12.2008
24.000
41.500
34.500
15.000
115.000
67.000
41.000
26.000
90.000
266.000
61.000
23.000
38.000
89.000
242.000
31.12.2009
13.000
55.000
68.000
-
Change
16.000
6.500
8.500
4.000
35.000
6.000
- 18.000
- 12.000
1.000
24.000
31.12.2008
Change
11.000
2.000
71.000
- 16.000
82.000
- 14.000
25.000
4.000
97.000
8.000
3.500
93.500
17.000
500
3.500
112.000
57.000
266.000
97.000
51.500
242.000
15.000
5.500
24.000
4-20
Cash Flow From Operating Activities
Net Income for the Year
Add:Depreciation
Changes in operating assets and liabilities
Accounts Receivable
Inventories
Prepaid Expenses
Accounts Payable
Accrued liabilities
Deferred tax liability
Net cash flows from operating activities
Cash Flow From Investing Activities
Purchase of property, plant & equipment
Purchase of long-term investments
Cash Outflows from investing activities
Cash Flow From Financing Activities
Long-term borrowing
Increase in share capital
Dividends paid
Cash Inflows from financing activities
Net Change in Cash
Cash at the beginning of the year
(C) 2007 Prentice Hall, Inc.
Cash at the end of the year
5.800
18.000
-
-
6.500
8.500
4.000
2.000
16.000
500
8.700
-
6.000
1.000
7.000
-
-
17.000
15.000
300
31.700
16.000
24.000
40.000
4-21
Analyzing the
Statement of Cash Flows

Is an important analytical tool for creditors,
investors and other users of financial
statement data





Firm’s ability to generate cash flows in the
future
Firm’s capacity to meet cash obligations
Firm’s future external financing needs
Firm’s success in productively managing
investing activities
Firm’s effectiveness in implementing financing
and investing strategies
(C) 2007 Prentice Hall, Inc.
4-22
Cash Flow from Operations
It is possible for a firm to be
highly profitable and not be able to:



Pay dividends or
Invest in new equipment
Service debt
(C) 2007 Prentice Hall, Inc.
4-23
Cash Flow from Operations (cont.)
The ongoing operation of any business
depends upon its success in
generating cash from operations
(C) 2007 Prentice Hall, Inc.
4-24
Analysis of the Statement of
Cash Flows
Should, at a minimum cover the following
areas:



Cash flow from operating activities
Cash inflows
Cash outflows
(C) 2007 Prentice Hall, Inc.
4-25
Analysis of the Statement of
Cash Flows (cont.)
Analyst Concerns:




The success or failure of the firm in
generating cash from operations
The underlying causes of the positive or
negative operating cash flow
The magnitude of positive or negative
operating cash flow
Fluctuations in cash flow from operations
over time
(C) 2007 Prentice Hall, Inc.
4-26
Analysis of the Statement of Cash
Flows (cont.)
Examples of cash flow from operations (CFO)
under the indirect method for various companies*
$ in millions
Net
Income
Airline
$ 548
Computer
6
Recreation
( 107)
Retailer
1,106
Semiconductor 8,664
Cash from
(used by)
Operations
$ 2,229
(
25)
42
1,068
14,823
Primary source
(use) of cash
within CFO
A/P-accrued liab.
(other assets)
depr./int. payable
(gain-asset sales)
depreciation
*Data from SEC website, www.sec.gov
(C) 2007 Prentice Hall, Inc.
4-27
Analysis of Cash Inflows
Generating cash from operations is the
preferred method for obtaining excess
cash to finance:



Capital expenditures and expansion
Repayment of debt
Payment of dividends
(C) 2007 Prentice Hall, Inc.
4-28
Analysis of Cash Outflows
When analyzing the cash outflows, the
analyst should consider the necessity
of the outflow and how the outflow
was financed
Generally, it is best to finance short-term
assets with short-term debt and longterm assets with long-term debt or
issuance of stock
(C) 2007 Prentice Hall, Inc.
4-29
NET DÖNEM KARI / ZARARI
Düzeltmeler
1-Amortisman ve İtfa Payları (+)
2-Karşılıklardaki Değişiklikler (+)
3-Faiz Giderleri (+)
VARLIK ve BORÇLARDAKİ DEĞİŞİM ÖNCESİ NET NAKİT
5.743.452
1.660.667
958.462
702.205
0
7.404.119
Varlık ve Borçlardaki Değişimler
1-Ticari Alacaklardaki Azalış (+)
2-İlişkili Taraflardan Alacaklardaki Artış (-)
3-Menkul Kıymetlerdeki Azalış (+)
4-Diğer Alacaklardaki Artış (-)
5-Diğer Varlıklardaki Artış (-)
6-Ticari Borçlardaki Azalış (-)
7-İlişkili Taraflara Borçlardaki Azalış (-)
8-Diğer Borçlardaki Azalış (-)
9-Ödenen Vergi
10-Ödenen Kıdem Tazminatı
11-Sermaye Artışından Sağlanan Nakit
(-9.092.163)
385.072
(-988.134)
0
32.089
(-5.907.678)
(-1.667.430)
(-311.472)
(-30.586)
(-604.024)
0
0
ESAS FAALİYETLERDEN SAĞLANAN NET NAKİT
(-1.688.044)
Yatırım Faaliyetlerinden Kaynaklanan Nakit
1-Duran Varlık Yatırımları (-)
2-Duran Varlık Satışı (+)
3-Tahsil Edilen Faiz ve Temettüler (+)
(-3.707.768)
(-3.771.672)
63.904
0
Finansman Faaliyetlerinden Kaynaklanan Nakit
NAKİT VE BENZERİ DEĞERLERDEKİ ARTIŞ AZALIŞ
7.028.272
1.632.460
DÖNEM BAŞINDAKİ NAKİT VE BENZERİ DEĞERLER
19.226.451
(C) 2007 Prentice Hall, Inc.
DÖNEM SONUNDAKİ NAKİT VE BENZERİ DEĞERLER
20.858.911
4-30
Analysis
Cash Inflows
Operating Activities
Sale of PP&E
Proceeds from borrowings
63.904
7.028.272
0%
1%
99%
Total Cash Inflows
7.092.176
100%
Cash Outflows
Operating Activities
Purchase of PP&E
1.688.044
3.771.672
Total Cash Outflows
5.459.716
31%
69%
0%
100%
(C) 2007 Prentice Hall, Inc.
4-31
İŞLETME FAALİYETLERİNDEN KAYNAKLANAN
NAKİT AKIMLARI
Net dönem karı
Net dönem karını iş letme faaliyetlerinden elde edilen
Nakit akımına getirmek için yapılan düzeltmeler:
Maddi duran varlıkların amortis manı
Maddi olmayan duran varlıkların amortis manı
Lis ans hakkı avans itfas ı
Şüpheli alacak karş ılığı
Rees kont giderleri
Kıdem tazminatı karş ılığı
İş letme s ermayes indeki değiş imler önces i faaliyetlerden elde edilen
nakit
Ticari alacaklardaki azalış
Diğer cari / dönen varlıklardaki (artış )
Diğer cari olmayan / duran varlıklardaki (artış )
Ticari borçlardaki artış / (azalış )
İliş kili taraflara borçlardaki artış / (azalış )
Diğer kıs a vadeli yükümlülüklerdeki artış
Diğer uzun vadeli yükümlülüklerdeki artış
İş letme faaliyetlerinden elde edilen nakit (net)
19
20
15
7
23
52.101.421
52.895.074
986.155
2.195
1.027.239
(26.748)
6.835
1.454
594.273
2.038
1.027.239
18.570
1.370
205
54.098.551
169.703
(1.105.016)
(14.283.727)
15.089
4.805.906
3.325.526
698.499
47.724.531
54.538.769
2.253.062
(614.649)
(570.524)
(45.984.100)
216.520
9.839.078
(135)
(1.518.490)
(102.069)
(1.620.694)
(958)
(54.434)
3.158.826
3.103.434
(537.053)
(45.350.288)
(45.887.341)
(612.193)
(12.230.965)
(12.843.158)
216.496
99.354
YATIRIM FAALİYETLERİNDEN KAYNAKLANAN
NAKİT AKIMLARI
Maddi olmayan duran varlık alımları
Maddi duran varlık alımları
Alınan ticari amaçla elde tutulan yatırımlar
Satılan ticari amaçla elde tutulan yatırımlar
Yatırım faaliyetlerinde (kullanılan) / elde edilen nakit (net)
20
5
FİNANSMAN FAALİYETLERİNDEN
KAYNAKLANAN NAKİT AKIMLARI
Finans al kiralama yükümlülüğü geri ödemes i
Dağıtılan temettü
Finans al faaliyetlerden (kullanılan) nakit (net)
HAZIR DEĞERLERDEKİ NET DEĞİŞİM
DÖNEM BAŞI HAZIR DEĞERLER
(C) 2007 Prentice Hall, Inc.
4
124.430
DÖNEM SONU HAZIR DEĞERLER
4
340.926
4-32
25.076
124.430
Analysis
Cash Inflows
Operating Activities
Sale of financial assets
Proceeds from borrowings
Total Cash Inflows
2006
47.724.531
47.724.531
Cash Outflows
Operating Activities
Purchase of PP&E
Investment in financial assets
Repayment of debt
Dividends paid
Total Cash Outflows
1.518.625
102.069
537.053
45.350.288
47.508.035
(C) 2007 Prentice Hall, Inc.
100%
0%
0%
100%
2007
9.839.078
3.158.826
12.997.904
76%
24%
0%
100%
0%
3%
0%
1%
95%
100%
55.392
612.193
12.230.965
12.898.550
0%
0%
0%
5%
95%
100%
4-33
Net dönem karı
Net dönem karını işletme faaliyetlerinden elde edilen
nakit akımına getirmek için yapılan düzeltmeler:
Maddi duran varlıkların amortismanı
Maddi olmayan duran varlıkların amortismanı
Mali borçlara ilişkin kur farkı ve faiz tahakkuku
Kıdem tazminatı karşılığı
Şüpheli ticari alacak karşılığı
Alacak/borç reeskontları
Maddi duran varlık satış zararı
Parasal kazanç ile netleştirilmiş vergi karşılığı
İşletme sermayesindeki değişim öncesi faaliyetlerden
elde edilen nakit akımı
Ticari alacaklardaki (artış/azalış)
İlişkili taraflardan boçlardaki (artış/azalış)
Diğer alacaklar (artış/azalış)
Stoklardaki (artış/azalış)
Diğer dönen varlıklardaki (artış/azalış)
Ticari borçlardaki (artış/azalış)
İlişkili taraflara boçlardaki (artış/azalış)
Alınan avanslardaki (artış/azalış)
Borç karşılıklarındaki (artış/azalış)
Diğer yükümlülüklerdeki (artış/azalış)
Faaliyetlerden elde edilen/kullanılan nakit
Ödenen Vergi
Ödenen Kıdem tazminatı
İşletme faaliyetlerinden elde edilen/kullanılan nakit
YATIRIM FAALİYETLERİNDEN
KAYNAKLANAN NAKİT AKIM I
Menkul kiymetlerdeki degişim(net)
Maddi duran varlık alımları
Maddi olmayan duran varlık alımları
Verilen avanslardaki değişim
Satılan maddi duran varlıkların net defter değeri
Diğer duran varlıklardaki (artış/azalış)
Yatırım faaliyetlerinde kullanılan nakit
FİNANSM AN FAALİYETLERİNDEN
KAYNAKLANAN NAKİT AKIM I
Mali borçlardaki net değişim
(C) 2007 Prentice Hall, Inc.
Topluluk dışı paylardaki değişim
Ödenen temettü
Finansal faaliyetlerden elde edilen nakit
(385.057)
2.213.779
-
-
19
20
6
23
7
7
958.305
1.024.802
28.654
22.947
41
(152.652)
1.944.397
6.066.564
7
9
10
12
15
7
9
21
23
10
(2.280.283)
(1.179.672)
12.657
84.010
671.767
623.118
427.514
20.951
383.209
623.111
-
(44.400)
(2.884)
35.661
2.076.488
34.613
(370.918)
(43.352)
(221.620)
(29.985)
(2.451.833)
(38.114)
-
19
15
1.082.056
(1.437.876)
6
24
(1.725.056)
199.916
(25.141)
231.187
(232.443)
209.987
647.148
19
20
731
(11.829)
(690.541)
868.768
41
23
231.916
1.221.930
1.463.493
21
(813.123)
650.391
3.324.257
(914.625)
(290.155)
2.119.477
166.237
(2.270.305)
(47.983)
119.381
351.297
70.093
(1.611.280)
(312.826)
4-34
(2.537)
-
(315.363)
Analysis
Cash Inflows
Operating Activities
Sale of financial assets
Proceeds from borrowings
Total Cash Inflows
2007
647.148
1.082.056
1.463.514
3.192.718
Cash Outflows
Operating Activities
Purchase of PP&E
Investment in financial assets
Repayment of debt
Dividends paid
Total Cash Outflows
2.489.947
29.985
813.123
3.333.055
(C) 2007 Prentice Hall, Inc.
20%
34%
46%
100%
2006
2.119.477
540.771
2.660.248
80%
20%
0%
100%
0%
75%
1%
0%
24%
100%
2.318.288
315.363
2.633.651
0%
88%
0%
12%
0%
100%
4-35
Cash Flow From Operating Activities
Net Income for the Year
Add:Depreciation
Changes in operating assets and liabilities
Accounts Receivable
Inventories
Prepaid Expenses
Accounts Payable
Accrued liabilities
Deferred tax liability
Net cash flows from operating activities
Cash Flow From Investing Activities
Purchase of property, plant & equipment
Purchase of long-term investments
Cash Outflows from investing activities
Cash Flow From Financing Activities
Long-term borrowing
Increase in share capital
Dividends paid
Cash Inflows from financing activities
Net Change in Cash
Cash at the beginning of the year
(C) 2007 Prentice Hall, Inc.
Cash at the end of the year
5.800
18.000
-
-
6.500
8.500
4.000
2.000
16.000
500
8.700
-
6.000
1.000
7.000
-
-
17.000
15.000
300
31.700
16.000
24.000
40.000
4-36
Cash Inflows
Cash Flows from operating activities
Long-term borrowing
Increase in share capital
Total
17.000
15.000
32.000
53%
47%
100%
Cash Outflows
Cash Flows from operating activities
Purchase of PP&E
Purchase of long-term investments
Dividends paid
Total
- 8.700
- 6.000
- 1.000
300
- 16.000
54%
38%
6%
2%
100%
Net change
(C) 2007 Prentice Hall, Inc.
16.000
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Preparing a Statement of Cash Flows
(cont.)
Examples of change in cash based on business
activities for companies in different industries*
$ in millions
Operating
Activities
Airline
$ 2,229
Computer
(
25)
Recreation
42
Retailer
1,068
Semiconductor 14,823
Investing
Activities
( 1,210)
118
(
26)
332
( 6,362)
Financing Change
Activities in Cash
213
1,232
1
94
(
5)
11
(
53)
1,347
(9,544)
(1,083)
*Data from SEC website, www.sec.gov
(C) 2007 Prentice Hall, Inc.
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