【文章內(nèi)容簡介】 but the firm can vary such inputs as labor and raw materials. In the longrun, all inputs of production (and hence costs) are variable. Financial accountants do not distinguish between variable costs and fixed costs. Instead, accounting costs usually fit into a classification that distinguishes product costs from period costs.,2.3 Taxes,The one thing we can rely on with taxes is that they are always changing Marginal vs. average tax rates Marginal – the percentage paid on the next dollar earned Average – the tax bill / taxable income Other taxes,Marginal versus Average Rates,Suppose your firm earns $4 million in taxable income. What is the firm’s tax liability? What is the average tax rate? What is the marginal tax rate? If you are considering a project that will increase the firm’s taxable income by $1 million, what tax rate should you use in your analysis?,2.4 Net Working Capital,Net Working Capital ≡ Current Assets – Current Liabilities NWC usually grows with the firm,U.S.C.C. Balance Sheet,2010,2009,2010,2009,Current assets:,Current Liabilities:,Cash and equivalents,$140,$107,Accounts payable,$213,$197,Accounts receivable,294,270,Notes payable,50,53,Inventories,269,280,Accrued expenses,223,205,Other,58,50,Total current liabilities,$486,$455,Total current assets,$761,$707,Longterm liabilities:,Fixed assets:,Deferred taxes,$117,$104,Property, plant, and equipment,$1,423,$1,274,Longterm debt,471,458,Less accumulated depreciation,(550),(460,Total longterm liabilities,$588,$562,Net property, plant, and equipment,873,814,Intangible assets and other,245,221,Stockholder39。s equity:,Total fixed assets,$1,118,$1,035,Preferred stock,$39,$39,Common stock ($1 par value),55,32,Capital surplus,347,327,Accumulated retained earnings,390,347,Less treasury stock,(26),(20),Total equity,$805,$725,Total assets,$1,879,$1,742,Total liabilities and stockholder39。s equity,$1,879,$1,742,,,,,,,,,Here we see NWC grow to $275 million in 2010 from $252 million in 2009.,This increase of $23 million is an investment of the firm.,2.5 Financial Cash Flow,In finance, the most important item that can be extracted from financial statements is the actual cash flow of the firm. Since there is no magic in finance, it must be the case that the cash flow received from the firm’s assets must equal the cash flows to the firm’s creditors and stockholders. CF(A)≡ CF(B) + CF(S),U.S.C.C. Financial Cash Flow,Cash Flow of the Firm,Operating cash flow,$238,(Earnings before interest and taxes,plus depreciation minus taxes),Capital spending,173,(Acquisitions of fixed assets,minus sales of fixed assets),Additions to net working capital,23,Total,$42,Cash Flow of Investors in the Firm,Debt,$36,(Interest plus retirement of debt,minus longterm debt financing),Equity,6,(Dividends plus repurchase of,equity minus new equity financing),Total,$42,Operating Cash Flow: EBIT $219 Depreciation $90 Current Taxes $71 OCF $238,U.S.C.C. Financial Cash