CHAPTER 2 Financial Statements, Cash Flow, and Taxes Balance sheet Income statement Statement of cash flows Accounting income vs. cash flow MVA and EVA Federal tax system 2-1 The Annual Report Balance sheet – provides a snapshot of a firm’s financial position at one point in time. | CHAPTER 2 Financial Statements Cash m Flow and Taxes Balance sheet Income statement Statement of cash flows Accounting income vs. cash flow MVA and EVA Federal tax system 2-1 The Annual Report Balance sheet - provides a snapshot of a firm s financial position at one point in time. Income statement - summarizes a firm s revenues and expenses over a given period of time. Statement of retained earnings - shows how much of the firm s earnings were retained rather than paid out as dividends. Statement of cash flows - reports the impact of a firm s activities on cash flows over a given period of time. 2-2 Balance Sheet Assets Cash A R Inventories Total CA Gross FA Less Dep. Net FA Total Assets 2002 7 282 632 160 1 287 360 1 926 802 1 202 950 263 160 939 790 2 866 592 2001 57 600 351 200 715 200 1 124 000 491 000 146 200 344 800 1 468 800 .
