From Operations: Net Income Plus: Depreciation Plus: Amortization Operating Cash Flow Plus: Changes in Non-Cash Current Assets Plus: Changes in Operations-related Current Liabilities Total From Operations From Investing Activities: Changes In Gross Fixed Assets Plus: Changes in Other Non-Current Assets Total From Investing Activities From Financing Activities: Changes in Non-Operations-related current liabilities Plus: Changes in Long-Term Debt Plus: Changes in Other Capital Accounts (except Retained Earnings) Less: Dividends Paid Total From Financing Activities Total Change in Cash Plus: Beginning Cash Balance Ending Cash Balance COMMON SIZE INCOME STATEMENTS All Items Expressed as a Percentage of Revenues.. Interest Rate = 10 Tax Rate = 40 1 2 3 === === === DEBT 0 500 900 EQUITY 1,000 500 100 -------- -------- -------- TOTAL ASSETS 1,000 1,000 1,000 Since the effect of financing doesn t appear until we go below the Operating Income (EBIT) line, we can jump straight down to the operating income to analyze the effect of financial leverage.. Consider the same firm when EBIT is only 60: 1 2 3 === === === DEBT 0 500 900 EQUITY 1,000 500 100 -------- -------- -------- TOTAL ASSETS 1,000 1,000 1,000 EBIT 60 60 60 - INT 0 (50) (90) -------- -------- -------- TAX.. Which type of debt do you think is more risky for the company to utilize (To answer this, ask yourself whether you would prefer to buy a house using a one-year note that would have to be refinanced in twelve months, or a 30-year mortgage.) Just as in accounting where changes in current liabilities are included as a part of operating cash flows (since accounts payable and accruals such as wages payable arise from operations), sometimes only the long-term portions of debt are considered..
How to draft a Financial Income Statement Analysis? An easy way to start completing your document is to download this Financial Income Statement Analysis template now!
Every day brings new projects, emails, documents, and task lists, and often it is not that different from the work you have done before. Many of our day-to-day tasks are similar to something we have done before. Don't reinvent the wheel every time you start to work on something new!
Instead, we provide this standardized Financial Income Statement Analysis template with text and formatting as a starting point to help professionalize the way you are working. Our private, business and legal document templates are regularly screened by professionals. If time or quality is of the essence, this ready-made template can help you to save time and to focus on the topics that really matter!
Using this document template guarantees you will save time, cost and efforts! It comes in Microsoft Office format, is ready to be tailored to your personal needs. Completing your document has never been easier!
Download this Financial Income Statement Analysis template now for your own benefit!