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 monitoring the firms performance

Stockholders report annual report required of publicly held corporations that summarizes and documents for stock holders the firms financial activities during the past year
It begins with letter to the stockholders from the firms president followed by the key financial statements and other information about the firm.

Letter to stoxkholders the first element of annual stockholders report and the primary 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 year and their anticipated effects on the firms financial condition 1

Key Financial Statements: a. The income statements

b.
c. d.

The balance sheet

The statement of retained earnings The statement of cash flow

Depreciation and Cash Flows

Depreciation the systematic charging of a portion of the costs of fixed assets against annual revenues 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 be added back to the firms net profits Noncash charges expenses deducted on the income statement that do not involve an actual outlay of cash during the period Depreciation, amortization, and depletion

Analyzing The Firms Cash Flow

The firms cash flows have been devided into: a. b. c. Operating flowsCash inflows and outflows directly related to production and sale of products Investment flows cash flows associated with purchase and sale of fixed assets and business interests Financing flows cash flows that result from debt and equity financing transaction
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OPERATING FLOWS
Labor Accrued Wages

INVESTMENT FLOWS

Raw Materials

Accounts Payable Fixed Assets

Work in Process

Overhead Expenses Business Interest

Finished Goods CASH AND MARKETABLE SECURITIES (JANTUNG) DIANALISIS DARI BANYAK MANANYA HASIL INI DARI 3 KEGIATAN

Operating expenses (inc. Dep) and Interest expenses

Short and Long term Debt

Taxes Equity

Sales

Account Receivables
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FINANCING FLOWS

Classifying Sources and Uses of Cash

ANALISISNYA KE KAS
SOURCES
Decrease in any assets Increase in any liabilities Net profit after taxes Depreciation and othet noncash charges Sale of stocks Increase in any assets Decrease in any liabilities Net loss Dividend paid Repurchase or retairement of stocks

USES

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

Account
Assets: Cash Marketable Securities Acc Rec Inventories Gross FA Acc Dep Liabilities: Acc Payable Notes Payable Accruals Long Term Debt Stockholders Equity: Prefered Stock Common Stock at Par Paid in Capital in Excess of Par Retained Earnings

Account Balance 31 Dec

2007 400 600 400 600 2.500 1.300 700 600 100 600 2006 300 200 500 900 2.200 1.200 500 700 200 400

Change

Classification
Source Use 100 400 100 300 100 200 300

100 400 -100 - 300 300 100 200 -100 -100 200

100 100

200

100 120 380

100 120 380

0 0 0

0 0 0

0 0 0

600

500

100

100 1.000 1.000

Net profit after taxes in 2007 Depreciation

$ 180 $100
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Baker Corporation Statement of cash flow for the year ended December 31, 2007

Cash Flows From Operating Activities:

Net Profit after taxes Depreciation Decrease in acc. rec Decrease in inventory Increase in acc payable Decrease in accruals Cashlow provided by operating activities 180 100 100 300 200 (100) 780 (300)

Cash Flows From Investment Activities:

Increase in gross FA Changes in business interest Cashlow provided by investmentactivities

(300)

Cash Flows From Financing Activities:

(100) Decrease in notes payable 200 Increase in long term debt 0 Changes in stockholders equity (80) Dividend paid Cashlow provided by financing activities Net Increase in Cash and Marketable Securities
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20 500