財務報表分析相關知識概述(英文版)(doc 9頁)

財務報表分析相關知識概述內容提要：
a. Cash Flows from Operations Computation:
Net income $10,000
Add (deduct) items to convert to cash basis:
Depreciation, depletion, and amortization $8,000
Deferred income taxes 400
Amortization of bond discount 50
Increase in accounts payable 1,200
Decrease in inventories 850 10,500
$20,500
Undistributed earnings of unconsolidated
subsidiaries and affiliates (200)
Amortization of premium on bonds payable (60)
Increase in accounts receivable (900) (1,160)
Cash provided by operations $19,340

b. (1) The issuance of treasury stock for employee stock plans (as compensation) requires an addback to net income because it is an expense not using cash.

(2) The cash outflow for interest is not included in expense and must be included as cash outflow in investing activities (as part of outlays for property.)

(3) If the difference between pension expense and actual funding is an accrued liability, the unpaid portion must be added back to income as an expense not requiring cash. If the amount funded exceeds pension expense, then net income must be reduced by that excess amount.

..............................