CP

344 CHAPTER 9 Financial Statements, Cash Flow, and Taxes Note that “Retained earnings” represents a claim against assets,not ass ...

Net Cash Flow 345 the same time, some revenues may not be collected in cash during the year, and these items must be subtracted ...

346 CHAPTER 9 Financial Statements, Cash Flow, and Taxes To illustrate depreciation’s effect, suppose a machine with a life of f ...

Statement of Cash Flows 347 Each of the above factors is reflected in the statement of cash flows,which sum- marizes the changes ...

348 CHAPTER 9 Financial Statements, Cash Flow, and Taxes What is the statement of cash flows, and what types of questions does i ...

Modifying Accounting Data for Managerial Decisions 349 are needed for use in corporate decision making. In the following section ...

350 CHAPTER 9 Financial Statements, Cash Flow, and Taxes treasurer, and they are not used in the core operations. Therefore, sho ...

Modifying Accounting Data for Managerial Decisions 351 shows that we can calculate operating capital either from the operating a ...

352 CHAPTER 9 Financial Statements, Cash Flow, and Taxes actually available for distribution to investors after the company has ...

Modifying Accounting Data for Managerial Decisions 353 Recall that the company does not have to use FCF to acquire operating ass ...

354 CHAPTER 9 Financial Statements, Cash Flow, and Taxes As noted earlier, a negative current FCF is not necessarily bad, provid ...

MVA and EVA 355 For most companies, the total amount of investor-supplied capital is the sum of equity, debt, and preferred stoc ...

356 CHAPTER 9 Financial Statements, Cash Flow, and Taxes both net income and EVA. Our calculation of EVA assumes that the true e ...

The Federal Income Tax System 357 capital employed, but EVA does. Because of this omission, net income is not as useful as EVA f ...

358 CHAPTER 9 Financial Statements, Cash Flow, and Taxes tax rates and other factors will almost certainly be different from tho ...

The Federal Income Tax System 359 TABLE 9-6 Individual Tax Rates for the 2001 Tax Year INDIVIDUAL TAX TABLE FOR THE 2001 TAX YEA ...

360 CHAPTER 9 Financial Statements, Cash Flow, and Taxes It should be noted that under U.S. tax laws ,interest on most state and ...

The Federal Income Tax System 361 assets held for more than 12 months are better than ordinary income for many people because th ...

362 CHAPTER 9 Financial Statements, Cash Flow, and Taxes Interest and Dividend Income Received by a Corporation Interest income ...

The Federal Income Tax System 363 its after-tax income would be $6,265. Other factors might lead GE to invest in bonds, but the ...