Financial Management 314 - Class Notes
Ch1. Financial statements & DuPont analysis
Ch2. Managerial financial statements
Ch3. Sustainable growth rate
Ch4. Financial forecasting
Ch 5. Optimal capital structure
Ch6. Free Cash Flow valuation
, Chapter 1- Financial statements
structure of statements
1. Statement financial position Notes :
2020
Assets 2739000 - PPE @ cost
PPE @ cost dpooooo
Accumulated dep
0113
-
accumulated dep 1958000 ) Revaluation 250000 0113 640000
PPE @ 1754000 Purchases sooooo depreciation 350000
carrying value
600000 total 990000
Goodwill Total 2750000
Manufacturing licence
-
sale vehicle
: 19000 ) all .
dep vehicle 145001
share Investments 0
12000 ) ace dep equip 110001
sale :
equipment .
1700000 CIB 985000
Longterm loan granted CIB 2739000
Non current assets
-
4054000
Inventory 450000
trade receivables 200000
Sale Vehicle
cash and equivalents 519000
sale of equip
cost 9000 cost 2000
22000
prepayments "' UMAEP 140001 11000 )
accumaep
Marketable securities
-
CV 5000
CV tooo
current tax asset
-
Profit / 10 " 115001 profit / loss o
dividends receivable
-
Proceeds 3500
proceeds 1000
current Assets 1191000
Total Assets 5245000
equitytlliabilities
Issued ordinary share capital 1900000
# Issued R
retained earnings llncome statement ) 385000 ordinary share capital #
250000 0113 1000000 1000000
reserves
Rights Issued 125000 SOOOOO
Ordinary shareholders equity / Kb) aszgooo
Conversion of debentures 400000 400000
preference share capital 200000
buyback l l l j
equity / ke )
-
shareholders
-
2735000
CIB 1525000 1900000
100000
Non
controlling interest
-
Equity 2835000
2110000
Interest-bearing debt
retirement benefit obligation
deferred tax liability
go-go ,
2330000
Non current liabilities
-
18000
trade payable
14000
current tax liabilities
dividends payable 10000
38000
bank overdraft
borrowing
-
short-term
current portion 4- loan
-
80000
current liabilities
5245000
otalequityoliabilities
-
, statement of cash flows Notes
cashflow from operating activities
Profit before finance costotax 826000 Changes innet
working capital
2018 2017 Movement
1-
depreciation 350000
Inventory 450000 300000 11500001
1-
Impairment of goodwill 300000
trade receivables 200000 120000 180000 )
1- loss with
disposal PPE 1500
prepayment 22000 12600 194001
on disposal PPE
gain trade payable 18000 24000 16000 )
-
-
1- loss on sale of share investment 1245400 )
-
gain on sale of share investment 120-0000 ) Income tax paid
-
Investment income 1127500 ) 0113 / current taxliabilityl 19000
OIB / deferred tax liability ) 215000
+ 1- Changes in
networking capital 1245400 )
income tax expense 196080
-
finance cost paid 1129920 ) total 430000
-
income tax paid 1256080 ) CIBCCTL ) 114000 )
activities 518600
Netcash generated from operating CIB / DTL ) 1160000 )
Income tax paid 256080
Cashflow from
investing activities
1- proceeds from disposal PPE 4500 Share investment
-
Payments forppe 1500000 ) cost :P -100000
Profit :
501×400000=200000
Proceeds intangible
-
1- from disposal of assets
Proceeds :
Noooooo
Payments for
intangible
-
-
assets
1- Proceeds onsaleshare investment 600000
-
Payment for share investment
advance loans granted 1100000 )
payment to
-
Proceeds for repayment loans granted
-
1-
+ investment income 127500
Net cashusedin investing activities 1468000)
cashflow from
investing activities Notes
capital
1- Increase in
ordinary share 500000 Mortgage loan
Debentures
decrease inordinaryshare capital
-
-
OIB 420000 OIB 1500000
1- Increase in preference share capital -
paid back 1500001 Conversion 14000001
-
decrease in preference share capital 1100000 )
CIB 310000 newdebissued 700000
1- Increase in LT loans 700000 CIB 1800000
-
decrease in IT loans 150000)
1- Increase inst loans
-
Dividends Paid
-
decrease inst loans -
olpsldiridendspayabk ) 12500
-
dividends paid 327500 pref dividends 20000
305000
Non interest ( sooooo) ord dividends
controlling
-
-
total 337800
110000 )
CIB / dividend payable )
Netcom
generated from financing activities 192500 dividends paid 327000
Net increase inoashandeash equivalents 243100
tcasnooasn equivalents @ begin of
year 237900
cash Roath equivalents @ end year 481000
Ch1. Financial statements & DuPont analysis
Ch2. Managerial financial statements
Ch3. Sustainable growth rate
Ch4. Financial forecasting
Ch 5. Optimal capital structure
Ch6. Free Cash Flow valuation
, Chapter 1- Financial statements
structure of statements
1. Statement financial position Notes :
2020
Assets 2739000 - PPE @ cost
PPE @ cost dpooooo
Accumulated dep
0113
-
accumulated dep 1958000 ) Revaluation 250000 0113 640000
PPE @ 1754000 Purchases sooooo depreciation 350000
carrying value
600000 total 990000
Goodwill Total 2750000
Manufacturing licence
-
sale vehicle
: 19000 ) all .
dep vehicle 145001
share Investments 0
12000 ) ace dep equip 110001
sale :
equipment .
1700000 CIB 985000
Longterm loan granted CIB 2739000
Non current assets
-
4054000
Inventory 450000
trade receivables 200000
Sale Vehicle
cash and equivalents 519000
sale of equip
cost 9000 cost 2000
22000
prepayments "' UMAEP 140001 11000 )
accumaep
Marketable securities
-
CV 5000
CV tooo
current tax asset
-
Profit / 10 " 115001 profit / loss o
dividends receivable
-
Proceeds 3500
proceeds 1000
current Assets 1191000
Total Assets 5245000
equitytlliabilities
Issued ordinary share capital 1900000
# Issued R
retained earnings llncome statement ) 385000 ordinary share capital #
250000 0113 1000000 1000000
reserves
Rights Issued 125000 SOOOOO
Ordinary shareholders equity / Kb) aszgooo
Conversion of debentures 400000 400000
preference share capital 200000
buyback l l l j
equity / ke )
-
shareholders
-
2735000
CIB 1525000 1900000
100000
Non
controlling interest
-
Equity 2835000
2110000
Interest-bearing debt
retirement benefit obligation
deferred tax liability
go-go ,
2330000
Non current liabilities
-
18000
trade payable
14000
current tax liabilities
dividends payable 10000
38000
bank overdraft
borrowing
-
short-term
current portion 4- loan
-
80000
current liabilities
5245000
otalequityoliabilities
-
, statement of cash flows Notes
cashflow from operating activities
Profit before finance costotax 826000 Changes innet
working capital
2018 2017 Movement
1-
depreciation 350000
Inventory 450000 300000 11500001
1-
Impairment of goodwill 300000
trade receivables 200000 120000 180000 )
1- loss with
disposal PPE 1500
prepayment 22000 12600 194001
on disposal PPE
gain trade payable 18000 24000 16000 )
-
-
1- loss on sale of share investment 1245400 )
-
gain on sale of share investment 120-0000 ) Income tax paid
-
Investment income 1127500 ) 0113 / current taxliabilityl 19000
OIB / deferred tax liability ) 215000
+ 1- Changes in
networking capital 1245400 )
income tax expense 196080
-
finance cost paid 1129920 ) total 430000
-
income tax paid 1256080 ) CIBCCTL ) 114000 )
activities 518600
Netcash generated from operating CIB / DTL ) 1160000 )
Income tax paid 256080
Cashflow from
investing activities
1- proceeds from disposal PPE 4500 Share investment
-
Payments forppe 1500000 ) cost :P -100000
Profit :
501×400000=200000
Proceeds intangible
-
1- from disposal of assets
Proceeds :
Noooooo
Payments for
intangible
-
-
assets
1- Proceeds onsaleshare investment 600000
-
Payment for share investment
advance loans granted 1100000 )
payment to
-
Proceeds for repayment loans granted
-
1-
+ investment income 127500
Net cashusedin investing activities 1468000)
cashflow from
investing activities Notes
capital
1- Increase in
ordinary share 500000 Mortgage loan
Debentures
decrease inordinaryshare capital
-
-
OIB 420000 OIB 1500000
1- Increase in preference share capital -
paid back 1500001 Conversion 14000001
-
decrease in preference share capital 1100000 )
CIB 310000 newdebissued 700000
1- Increase in LT loans 700000 CIB 1800000
-
decrease in IT loans 150000)
1- Increase inst loans
-
Dividends Paid
-
decrease inst loans -
olpsldiridendspayabk ) 12500
-
dividends paid 327500 pref dividends 20000
305000
Non interest ( sooooo) ord dividends
controlling
-
-
total 337800
110000 )
CIB / dividend payable )
Netcom
generated from financing activities 192500 dividends paid 327000
Net increase inoashandeash equivalents 243100
tcasnooasn equivalents @ begin of
year 237900
cash Roath equivalents @ end year 481000
