Kelayakan dan Kebertahanan Bisnis (KKB)

FINANCIAL STATEMENTS
The Four Key Financial Statements

Income Statement
•
COMPANY’S OPERATING RESULTS DURING A SPECIFIED PERIOD.
•
The Four Key Financial Statements

Balance Sheet
•
POSITION AT A GIVEN POINT IN TIME.
• ASSETS INDICATE WHAT THE FIRM OWNS, EQUITY REPRESENTS THE OWNERS’
INVESTMENT, AND LIABILITIES INDICATE WHAT THE FIRM HAS BORROWED.
The Four Key Financial Statements

Statement of Retained Earnings

•
DIVIDENDS PAID DURING THE YEAR, WITH THE CHANGE IN
RETAINED EARNINGS.
The Four Key Financial Statements

Statement of Cash Flows

•

• This statement not only provides insight into a company’s investment, financing and
operating activities, but also ties together the income statement and previous and current
balance sheets.
 Operating Cash Flow
• A firm’s operating Cash Flow (OCF) is the cash flow a firm generates from
normal operations—from the production and sale of its goods and services.
• OCF may be calculated as follows:

NOPAT = EBIT × (1 – T)
OCF = NOPAT + Depreciation

OCF = [EBIT × (1 – T)] + Depreciation

 Operating Cash Flow-
Baker Corporation

OCF = [$370 × (1 – .40)] + $100 = $322

Thus, we can conclude that Baker’s operations are
generating positive operating cash flows.
 Free Cash Flow
Free cash flow (FCF) is the amount of cash flow available to investors
(creditors and owners) after the firm has met all operating needs and paid for
investments in net fixed assets (NFAI) and net current assets (NCAI).

FCF = OCF – NFAI – NCAI

NFAI = Change in net fixed assets + Depreciation

NCAI = Change in CA – Change in (A/P + Accruals)

Free Cash Flow-Baker Corporation
NFAI = [($1,200 – $1,000) + $100] = $300
NCAI = [($2,000 – $1,900) + ($800 - $700)] = $0

FCF = $322 – $300 – $0 = $22

Thus, the firm generated adequate cash flow to cover all of its
operating costs and investments and had free cash flow available to
pay investors.
RATIO ANALYSIS

and interpreting financial

ratios to analyze and monitor
the firm’s performance.
 The firm’s own management.

•
ial situation, and it attempts to
produce financial ratios that will be considered
favorable by both owners and creditors.
•
Types of Ratio Comparisons

Cross-sectional analysis

Time-Series Analysis

Benchmarking
Combined Analysis

time-series analyses.

•
Cautions about Using Ratio Analysis
• Ratios that reveal large deviations from the norm merely indicate the possibility of a
problem.
• A single ratio does not generally provide sufficient information from which to judge the
overall performance of the firm.
• The ratios being compared should be calculated using financial statements dated at the
same point in time during the year.
• It is preferable to use audited financial statements.
• The financial data being compared should have been developed in the same way.
• Results can be distorted by inflation.
 Categories of Financial Ratios
Financial ratios can be divided for convenience into five general categories
• liquidity,
• activity,
• debt,
• profitability, and
• market ratios.
Liquidity, activity, and debt ratios primarily measure risk.
Profitability ratios measure return.
Market ratios capture both risk and return.
 Dupont System of Analysis
Pada metode ini, laporan
keuangan perusahaan
seperti neraca dan laporan
laba rugi dibagi menjadi 2
(dua) bagian yang
kemudian digunakan untuk
mengukur kondisi
perusahaan. System
Dupont mengukur
profitability (laba), Return
on Total Assets (ROA) dan
Return on Equity (ROE).
Financial
Planning

Vera Intanie Dewi

 Penyusutan didefinisikan pengalokasian jumlah suatu
aset yang dapat disusutkan sepanjang masa manfaat
yang diestimasi.

Besarnya penyusutan untuk periode akuntansi

dibebankan ke pendapatan baik secara langsung
maupun tidak langsung

Menurut PSAK No. 17

 Depreciation
An important factor affecting a firm’s
cash flow is depreciation (and any
other noncash charges).
Pembebanan non-kas adalah beban biaya yang
terdapat dalam laporan laba/rugi, tetapi
perusahaan tidak mengeluarkan uang kas
sepanjang periode tersebut.

Arus kas dari operasi =

laba bersih sesudah pajak + beban non-kas
Depreciable Value of an Asset the amount to be
depreciated)

• Under the basic MACRS procedures, the depreciable

value of an asset is its full cost, including outlays for
installation.
• Land values are not depreciable,only buildings and
other improvements are depreciable.
• No adjustment is required for expected salvage value.
• For tax purposes, the depreciable life of an asset is
determined by its MACRS recovery predetermined
period.
First Four Property Classes under
MACRS
Depreciation Methods
• straight-line (garis lurus),
• double-declining balance (saldo
menurun/saldo menurun ganda),
• sum-of-the-years’-digits (jumlah
angka - tahun)
Rounded Depreciation Percentages by Recovery Year Using
MACRS for First Four Property Classes
 Example
Baker Corporation acquired, for an installed cost of $40,000, a
machine having a recovery period of 5 years. Using the applicable
MACRS rates, the depreciation expense each year is as follows:
Straight-line (garis lurus)

Sebuah Mesin yang harga perolehannya

IDR. 500.000.000Dan masa manfaatnya 10 tahun,

maka:
penyusutannya setiap tahun adalah sebesar
IDR 50.000.000 = (IDR 500.000.000 : 10 tahun).
Saldo Menurun
Sebuah mesin dibeli dan ditempatkan pada bulan Januari 2020
Dengan harga perolehan sebesar IDR 120.000.000.
Masa manfaat dari mesin tsb adalah 5 tahun.
Jika tarif penyusutan misalnya ditetapkan 50% dari nilai sisa buku,
maka perhitungan penyusutannya adalah sbb:
The Financial Planning Process
• The financial planning process begins with long-term, or strategic, financial
plans that in turn guide the formulation of short-term, or operating, plans
and budgets.
• Two key aspects of financial planning are cash planning and profit planning.
⚬ Cash planning involves the preparation of the firm’s cash budget.
⚬ Profit planning involves preparation of pro forma statements.
The Financial Planning Process:
Long-Term (Strategic) Financial Plans

• Long-term (strategic) financial plans lay out a company’s planned financial

actions and the anticipated impact of those actions over periods ranging
from 2 to 10 years.
• Firms that are subject to high degrees of operating uncertainty, relatively short
production cycles, or both, tend to use shorter planning horizons.
• These plans are one component of a company’s integrated strategic plan
(along with production and marketing plans) that guide a company toward
achievement of its goals.
The Financial Planning Process:
Long-Term (Strategic) Financial Plans
Long-term financial plans consider a number of financial
activities including:
• Proposed fixed asset investments
• Research and development activities
• Marketing and product development
• Capital structure
• Sources of financing
These plans are generally supported by a series of annual
budgets and profit plans.
 The Financial Planning Process:
Short-Term (Operating) Financial Plans
• Short-term (operating) financial plans specify short-term
financial actions and the anticipated impact of those
actions.
• Key inputs include the sales forecast and other operating and
financial data.
• Key outputs include operating budgets, the cash budget, and
pro forma financial statements.
• This process is described graphically on the following slide.
The Financial Planning Process:
Short-Term (Operating) Financial Plans
The Financial Planning Process:
Short-Term (Operating) Financial Plans
• As indicated in the previous exhibit, short-term financial planning
begins with a sales forecast.
• From this sales forecast, production plans are developed that
consider lead times and raw material requirements.
• From the production plans, direct labor, factory overhead, and
operating expense estimates are developed.
• From this information, the pro forma income statement and cash
budget are prepared—ultimately leading to the development of the
pro forma balance sheet.
Cash Planning: Cash Budgets
• The cash budget or cash forecast is a statement of the firm’s
planned inflows and outflows of cash that is used to estimate its
short-term cash requirements.
• Typically, the cash budget is designed to cover a 1-year period,
divided into smaller time intervals.
Cash Planning: Cash Budgets
• A sales forecast is a prediction of the sales activity during a given period,
based on external and/or internal data.
• The sales forecast is then used as a basis for estimating the monthly cash
flows that will result from projected sales and from outlays related to
production, inventory, and sales.
• The sales forecast may be based on an analysis of external data, internal
data, or a combination of the two.
• An external forecast is a sales forecast based on the relationships observed
between the firm’s sales and certain key external economic indicators.
• An internal forecast is a sales forecast based on a buildup, or consensus, of
sales forecasts through the firm’s own sales channels.
Coping with Uncertainty in the Cash
Budget
• One way to cope with cash budgeting uncertainty is to prepare several cash
budgets based on several forecasted scenarios (e.g., pessimistic, most likely,
optimistic).
• From this range of cash flows, the financial manager can determine the amount
of financing necessary to cover the most adverse situation.
• This method will also provide a sense of the riskiness of alternatives.
• An example of this sort of “sensitivity analysis” for Coulson Industries is shown
on the following slide.
A Scenario Analysis of Coulson
Industries’ Cash Budget ($000)
Profit Planning:
Pro Forma Statements

• Pro forma financial statements are projected, or forecast, income

statements and balance sheets.
• The inputs required to develop pro forma statements using the
most common approaches include:
⚬ Financial statements from the preceding year
⚬ The sales forecast for the coming year
⚬ Key assumptions about a number of factors
 Vectra Manufacturing’s
Income Statement for the Year
Ended
December 31, 2012
Vectra Manufacturing’s Balance Sheet,
December 31, 2012
Sales Forecast for Vectra Manufacturing
Profit Planning: Pro Forma Financial
Statements (cont.)
Step 1: Start with a Sales Forecast (cont.)
• The previous sales forecast is based on an increase in
price from $20 to $25 per unit for Model X and from
$40 to $50 per unit for Model Y.
• These increases are required to cover anticipated
increases in various costs, including labor, materials,
& overhead.
 Profit Planning: Pro Forma Financial
Statements (cont.)
Step 2: Preparing the Pro Forma Income Statement
• A simple method for developing a pro forma income statement is
the percent-of-sales method.
• This method starts with the sales forecast and then expresses the
cost of goods sold, operating expenses, interest expense, and
other accounts as a percentage of projected sales.
 Profit Planning: Pro Forma Financial
Statements (cont.)

By using dollar values taken from Vectra’s 2012 income statement

(Table 4.12), we find that these percentages are
Profit Planning: Pro Forma Financial
Statements (cont.)
Step 2: Preparing the Pro Forma Income Statement (cont.)
• Clearly, some of the firm’s expenses will increase with the level of
sales while others will not.
• the use of past cost and expense ratios generally tends to understate
profits when sales are increasing. (Likewise, it tends to overstate
profits when sales are decreasing.)
• The best way to generate a more realistic pro forma income
statement is to segment the firm’s expenses into fixed and variable
components, as illustrated in the following example.
A Pro Forma Income Statement, Using the
Percent-of-Sales Method, for Vectra
Manufacturing for the Year Ended
December 31, 2016
Profit Planning: Pro Forma Financial
Statements (cont.)
Step 3: Preparing the Pro Forma Balance Sheet
• The judgmental approach is a simplified approach for preparing the
pro forma balance sheet under which the firm estimates the values of
certain balance sheet accounts and uses its external financing as a
balancing, or “plug,” figure.
• To apply this method to Vectra Manufacturing, a number of simplifying
assumptions must be made.
Profit Planning: Pro Forma Financial
Statements (cont.)
Step 3: Preparing the Pro Forma Balance Sheet (cont.)
• A minimum cash balance of $6,000 is desired.
• Marketable securities will remain at their current level of $4,000.
• Accounts receivable will be approximately $16,875 which represents 45 days of sales (about
1/8th of a year) on average [(45/365) × $135,000].
• Ending inventory will remain at about $16,000. 25% ($4,000) represents raw materials and
75% ($12,000) is finished goods.
• A new machine costing $20,000 will be purchased. Total depreciation will be $8,000. Adding
$20,000 to existing net fixed assets of $51,000 and subtracting the $8,000 depreciation yields
a net fixed assets figure of $63,000.
 Profit Planning: Pro Forma Financial
Statements (cont.)

Step 3: Preparing the Pro Forma Balance Sheet (cont.)

• Purchases will be $40,500 which represents 30% of annual sales (30% × $135,000). Vectra
takes about 73 days to pay on its accounts payable. As a result, accounts payable will equal
$8,100 [(73/365) × $40,500].
• Taxes payable will be $455 which represents one-fourth of the 1998 tax liability.
• Notes payable will remain unchanged at $8,300.
• There will be no change in other current liabilities, long-term debt, and common stock.
• Retained earnings will change in accordance with the pro forma income statement.
A Pro Forma Balance Sheet, Using the Judgmental Approach, for Vectra
Manufacturing (December 31, 2013)
 REFERENSI:

THANK YOU
Gitman, L. J., and C.D.Zutter. (2015). Principles of
managerial finance. 15th Global Edition, Pearson
Education Limited