Lý thuyết tài chính - Using financial statements and budgets

PFIN4USING FINANCIAL STATEMENTS AND BUDGETS 2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY2Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 1 Understand the relationship between financial plans and statements2 Prepare a personal balance sheet3 Generate a personal income and expense statement4 Develop a good record-keeping system and use ratios to evaluate personal financial statementsLEARNING OUTCOMESPFIN4 | CH23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Construct a cash budget and use it to monitor and control spending 6 Apply time value of money concepts to put a monetary value on financial goalsLEARNING OUTCOMES (continued)PFIN4 | CH2Financial Statements4Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Balance sheets and income and expense statementsServe as planning tools that are essential to develop and monitor personal financial plansBudget: Detailed financial report that looks forward based on expected income and expensesPFIN4 | CH2Exhibit 2.15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Interlocking Network of Financial Plans and StatementsPFIN4 | CH2Balance Sheet6Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describes a person’s financial position at a given timeTotal assets = Total liabilities + net worthNet worth = Total assets - total liabilitiesPFIN4 | CH2Assets7Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Items that one ownsLiquid assets: Held in form of cashInvestments: Acquired to earn a returnReal property: Immovable assetsPersonal property: Movable and used in everyday lifePFIN4 | CH2Liabilities8Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Debts like credit card charges, loans, and mortgagesCurrent or short-term: Due within 1 year of the date of the balance sheetOpen account credit obligations: Current liabilities that represent the balances outstanding against established credit linesLong-term: Debt due 1 year or more from the date of the balance sheetPFIN4 | CH2Net Worth9Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Individual’s or family’s actual wealthEquity: Actual ownership interest in a specific asset or group of assetsIf the net worth is less than zero, then the individual or family is insolventPFIN4 | CH2Exhibit 2.210Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Median Net Worth by AgePFIN4 | CH2Source: Adapted from United States Census Bureau, “Net Worth and Asset Ownership of Households: 2011,” Table 1, Sheet Format and Preparation11Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. List your assets at their fair market value as of the date you are preparing the balance sheetList all current and long-term liabilitiesCalculate net worthPFIN4 | CH2Income and Expense Statement12Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH2Prepared on a cash basisCash basis: Only transactions involving actual cash inflows or actual cash outlays are recordedIncome: earnings received as wages, salaries, bonuses, commissions, interest and dividends, or proceeds from the sale of assetsExpenses: Money spent on living expenses and to pay taxes, purchase assets, or repay debtIncome and Expense Statement13Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH2Cash surplus: Excess amount of income over expenses Results in increased net worthCash deficit: Excess amount of expenses over incomeResults in insufficient funds and decreased net worthExhibit 2.314Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. How we Spend our IncomePFIN4 | CH2Source: Derived from data in “Consumer Expenditures Midyear Update - July 2012 through June 2013 Average,” Washington, D.C.: U.S. Department of Labor, Bureau of Labor Statistics, News Release, USDL-14-0874, Table A, “Average Expenditures and Characteristics of All Consumer Units and Percent Changes, May 23, 2014, accessed July 2014.Preparing the Income and Expense Statement15Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Record your income from all sources for the chosen periodEstablish meaningful expense categoriesSubtract total expenses from total income to get the cash surplus or deficitPFIN4 | CH2Exhibit 2.416Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ratios for Personal Financial Statement AnalysisPFIN4 | CH2Cash Budget17Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Takes into account estimated monthly cash receipts and cash expenses for the coming yearHelps to:Maintain the necessary information to monitor and control financesPFIN4 | CH2Cash Budget18Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Decide how to allocate income to reach financial goalsImplement a system of disciplined spendingReduce needless spendingAchieve long-term financial goalsPFIN4 | CH2Stages of Cash Budget Preparation Process19Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Estimating incomeEstimating expensesFinalizing the cash budgetPFIN4 | CH2Dealing With Temporary Budget Deficit20Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Shift expenses from months with budget deficits to months with surplusesUse savings, investments, or borrowing to cover temporary deficitsPFIN4 | CH2Dealing With Annual Budget Deficit21Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Liquidate savings and investments or borrow to meet the total deficitCut low-priority expenses from the budgetIncrease incomePFIN4 | CH2Budget Control Schedule22Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Summary that shows how actual income and expenses compare with:Budget categoriesExisting variancesPFIN4 | CH2Time Value of Money23Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Concept that a dollar today is worth more than a dollar received in the futureFuture value: Today’s amount that will grow if it earns a specific rate of interest over a given periodGrowth in value occurs because of earning interest and compoundingFuture value = Amount invested x future value of factorPFIN4 | CH2Time Value of Money24Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Annuity: Fixed sum of money that occurs annuallyYearly savings = amount of money desired future value of annuity factorPresent value: Value today of an amount to be received in the futureDiscounting: Process of finding present valuePresent value = Future value x Present value factorPFIN4 | CH225Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Personal financial statements Balance sheetIncome and expense statementBudgetLiquid assetsReal propertyPersonal propertyFair market valueCurrent (short-term) liabilitiesKEY TERMSOpen account credit obligationsLong-term liabilitiesNet worthEquityInsolvencyCash basisIncomeCash surplusCash deficitSolvency ratioPFIN4 | CH226Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Liquidity ratioSavings ratioDebt service ratioCash budgetBudget control scheduleKEY TERMSTime value of moneyFuture valueCompoundingPresent valueDiscountingPFIN4 | CH227Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SUMMARYFinancial plans, financial statements, and budgets provide direction by helping you work toward specific financial goalsBalance sheet preparation enables you to know your financial statusIncome and expense statement is prepared on a cash basis recording only actual cash inflows and actual cash outlaysPreparing, analyzing, and monitoring your personal budget are essential steps for successful personal financial planningPFIN4 | CH2