1 / 12

Introduction to Finance: Balance Sheet and Income Statement

Introduction to Finance: Balance Sheet and Income Statement. Annual Report. Letter from Management. Summary of Activities over the past year. Assessment of Future Prospects. Financial Information. Financial Information. Balance Sheet Income Statement Cash Flows Notes. Balance Sheet.

pascal
Download Presentation

Introduction to Finance: Balance Sheet and Income Statement

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Introduction to Finance:Balance Sheet and Income Statement

  2. Annual Report • Letter from Management. • Summary of Activities over the past year. • Assessment of Future Prospects. • Financial Information N. Takezawa (ICU) 2002

  3. Financial Information • Balance Sheet • Income Statement • Cash Flows • Notes N. Takezawa (ICU) 2002

  4. Balance Sheet • “Snap-shot”– summary of investing and financing activities at a point in time. • Assets (investing): “economic resources” which provide future benefits. • Liabilities and Shareholder Equity (financing): creditors and owner’s “claim on assets.” N. Takezawa (ICU) 2002

  5. Purchase Assets 資産購入 Raise Cash 資金調達 Produce　Goods Assets （資産） Current　Assets （流動資産） Fixed　Assets　 （固定資産） Debt,Liability （借入、負債） Equity （株主資本） Balance retained earnings Earnings, Net Income N. Takezawa (ICU) 2002

  6. Assets = Liabilities + Shareholder Equity Current Liability (<1yr) Current Assets (<1yr) Liabilities Assets Non-current Liability Contribution Capital Non-current Assets Shareholder Equity Retained Earnings N. Takezawa (ICU) 2002

  7. Assets • Current Assets: cash, short-term marketable securities, accounts receivable (amount expected from customers from sales/services), inventory (supplies, finished goods). • Fixed Assets [property, plant equipment]: tangible long-lived assets such as buildings, machinery, computers, etc. • Investments: examples include long term securities of other firms such as common stock. N. Takezawa (ICU) 2002

  8. Liabilities • Current liabilities: short term (under a year) notes, bonds. Liabilities to suppliers, employees,… • Long term (non-current): Examples include bonds, mortgages,… N. Takezawa (ICU) 2002

  9. Income Statement • Summarizes operations, activities over time period. • Revenues: inflow of assets (or reduction in liabilities) – revenue generation. • Expenses: outflow of assets (or increase in liabilities) used in generating revenues. • Net Income: Revenues-Expense. Noteexpense includes interest payments and taxes. N. Takezawa (ICU) 2002

  10. Exercise • Find corporate website for Sony (English or Japanese) • Find Investor Relations page. • Find annual report (2002) and related information. • Obtain copy of balance sheet and income statement from the annual report. N. Takezawa (ICU) 2002

  11. Balance Sheet Current Asset Cash Inventory Accounts Receivable Fixed Asset (PPE) 貸借対照表 流動資産 現金 在庫（原材料、製品） 売掛金 固定資産　（設備、機械） Glossary N. Takezawa (ICU) 2002

  12. Current　Liability Accounts　Payable Short-term　Debt Long-term　Debt Shareholder　Equity Retained　Earnings Contributed　Capital 流動負債 買掛金 短期借入金 長期借入金 株主資本 保留利益 払込資本金、出資金 N. Takezawa (ICU) 2002

More Related