某公司的股票是否值得買 … ？ 公司計劃擴廠、研發新商品 … ，資金將如何調度 … ？ 某公司欲賒購商品 ， 其是否有短期償債的能力 … ？ 賣得多，賺得多？

1. 問題 • 某公司的股票是否值得買…？ • 公司計劃擴廠、研發新商品…，資金將如何調度…？ • 某公司欲賒購商品，其是否有短期償債的能力…？ • 賣得多，賺得多？ Efficient use of financial resources

2. The Production executive said, “Remember, nothing happens in this place until we produce something.” • The director ofresearch and development said, “Wrong. Nothing happens until we design something.” • The marketing executive said, “Nothing happens here until we sell something.” • The accounting manager said, “It doesn’t matter what you produce, design, or sell. No one knows what happens until we tally up the results!”

3. Good financial management is critical to any business firm’s success.

4. Open-book management(公開化管理方式) • Meaning • Sharing operating and financial information with employees. • Advantage • To show employees how their work directly influences the company’s overall financial performance • To increase employees’ feelings of “ownership” in the firm Efficient use of financial resources

5. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Uses of accounting information • Reporting Obtaining accurate financial data about a company & create reports for stakeholders • Managerial decision making Managers and owners of businesses regularly make decisions based on detailed information • Control By reviewing financial information, managers monitor performance of people, departments, divisions, and products Efficient use of financial resources

6. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets 系學會憑什麼向我收錢…拒繳會費!!(不清楚資金運用狀況) 畢業旅行方案：花東、泰國、法國…(好玩 vs. 經費) 為什麼每個月錢都不夠用？(預算？資金控制？) 問題 Efficient use of financial resources

7. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Internal stakeholders Stakeholders in accounting information Stakeholder Use of accounting information Managers To plan and control operations Employees To assess and reduce costs and determine profitability; To calculate pay and benefits Investors To calculate returns to stockholders; To determine a firm's growth prospects Creditors To assess the risk involved in lending money to a firm Union officials To determine a firm's ability to provide competitive wages and benefits; To use in contract negotiations Suppliers To assess a firm's ability to pay for material and supplies Government agencies To determine a firm's legitimate deductible expenses; To calculate a firm's tax liabilities; To ensure that investors have accurate information on a firm to make investment decisions External stakeholders Efficient use of financial resources

8. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets External stakeholders’ problem Is the stock worthy to buy? How about the sales, profits and expenses? Internal stakeholders’ problem What is the cost of production, marketing project…? Internal & external Accounting information— problem Efficient use of financial resources

9. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Financial accounting Information that serves external stakeholders. Managerial accounting Information that serves internal users. Internal & external Accounting information Efficient use of financial resources

10. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Balance sheet & income statement Balance sheet Summarizes a firm's financial position at a particular date – like a photograph Incomestatement Reports how a firm performed during the periods represented and shows whether the firm made a profit –like a motion picture Efficient use of financial resources

11. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets The accounting equation Assets = Liabilities + Owners' equity Legal and economic claims against assets Debts or amounts owed to an outside individual or organization Any economic resource expected to benefit a firm or individual who owns it Excess of assets after subtracting liabilities Accounting equation (會計方程式) Efficient use of financial resources

12. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Meaning of asset (資產) Any economic resource expected to benefit a firm or an individual who owns it. A firm’s assets are listed on the balance sheet in descending order of liquidity— that is, in terms of the ease with which they can be converted into cash. Balance sheet — the asset side Efficient use of financial resources

13. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Liabilities (負債) Debts or amounts owed to an outside individual or organization. Owners’ equity (業主權益) The excess of assets after subtracting liabilities. Balance sheet — liabilities and owners’ equity Efficient use of financial resources

14. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Balance sheet (資產負債表) ASSETS CURRENT ASSETS CASH $ 80,744 INVESTMENTS 83,176 ACCOUNTS RECEIVABLE 22,434 INVENTORY 36,520 PREPAID EXPENSES 3,081 DEFERRED INCOME TAXES 2,584 TOTAL CURRENT ASSETS $228,539 FIXED ASSETS PROPERTY, PLANT, EQUIP. $ 83,024 LAND 7,774 BUILDINGS 22,226 MACHINERY/EQUIP. 133,601 ACCUM. DEPREC. (80,577) TOTAL FIXED ASSETS$ 83,024 OTHER ASSETS INTANGIBLE ASSETS $ 87,843 INVESTMENTS 59,252 CASH CURR. VALUE 28,765 TOTAL OTHER ASSETS$ 175,860 TOTAL ASSETS$ 487,423 LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE $ 12,450 DIVIDENDS PAYABLE 2,514 ACCRUED LIABILITIES 31,297 INCOME TAXES PAYABLE 7,123 TOTAL CURRENT LIABILITIES $ 53,384 LONG-TERM LIABILITIES DEFERRED INCOME TAXES 9,014 HEALTH CARE &LIFE INSURANCE 6,145 INDUSTRIAL DEVELOP. BONDS 7,500 DEFERRED COMPENSATION 14,923 TOTAL LONG-TERM LIABIL. $ 37,582 TOTAL LIABILITIES$ 90,966 OWNERS' EQUITY SHAREHOLDERS' EQUITY COMMON STOCK $ 243,301 RETAINED EARNINGS 153,156 TOTAL SHAREHOLDERS' EQUITY$ 396,457 TOTAL LIABILITIES & EQUITY$ 487,423

15. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets It reports on how a company performedduring the periods presented and shows whether the firm’s operations made a profit. The income statement matches the revenues earned against all the costs and expenses incurred to operate the firm. Income statement (profit and loss statement) Efficient use of financial resources

16. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Revenue The primary source of revenue earned by a firm from its customers for goods sold or services rendered. Content of Income statement1 Efficient use of financial resources

17. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Cost of goods sold1 All the costs a firm incurs to purchase raw materials and supplies and then to convert them into the finished goods that it sells. Cost of goods sold2 Components Direct materials Direct labor Production overhead costs Content of Income statement2 Efficient use of financial resources

18. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Operating expenses Other costs incurred in producing a good or service, including selling andadministrative costs, amortization, and income taxes. Gross vs. net earnings Content of Income statement3 Efficient use of financial resources

19. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Income statement (損益表) NET SALES $ 388,659 COST OF GOODS SOLD (187,617) GROSS PROFIT $ 201,042 SELLING, MARKETING, AND ADMINISTRATIVE EXPENSES (97,070) AMORTIZATION OF INTANGIBLE ASSETS (2,706) PROFIT FROM OPERATIONS $ 101,265 OTHER INCOME, NET 4,798 PROFIT BEFORE TAXES $ 106,063 PROVISION FOR INCOME TAXES (38,537) NET PROFITS $ 67,526 Efficient use of financial resources

20. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Net profit = gross profit minus operating expenses and income taxes Net Profit = Gross profit minus operating expenses and income taxes Net earnings = net profit with adjustments for gains and losses on securities, foreign currency fluctuations, or extraordinary items (like losses due to fire) Net earnings (income) NET SALES $ 388,659 COST OF GOODS SOLD (187,617) GROSS PROFIT $ 201,042 SELLING, MARKETING, AND ADMINISTRATIVE EXPENSES (97,070) AMORTIZATION OF INTANGIBLE ASSETS (2,706) PROFIT FROM OPERATIONS $ 101,265 OTHER INCOME, NET 4,798 PROFIT BEFORE TAXES $ 106,063 PROVISION FOR INCOME TAXES (38,537) NET PROFITS $ 67,526 OTHER EARNINGS, NET OF TAX UNREALIZED GAINS (LOSSES) ON SECURITIES 976 FOREIGN CURRENCY ADJUSTMENTS (30) OTHER COMPREHENSIVE EARNINGS 946 TOTAL NET INCOME $ 68,472 Efficient use of financial resources

21. If a firm doesn’t have enough cash on hand, it can’t pay its rent, meet its payroll, or fund its day-today operations. There are companies, in fact, that are profitable but still end up filing for bankruptcybecause they don’t have the cash to pay their bills.

22. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Identifies where cash camefrom and where it was spent Operating activities Revenues and expenses from the firm's major line of business Includes purchase or sale of capital assets (land, buildings) and securities Investing activities Includes issuing stock, notes, bonds payable, treasury stock, & dividends Financing activities Cash flow statement (現金流量表) Efficient use of financial resources

23. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Financial ratios Quantitative measure that assesses the relationship between financial statement variable. Financial ratio analysis Efficient use of financial resources

24. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Liquidity ratios 流動性比率—current ratio (流動比率) Liquidity ratios: Measures the ability of the firm to meet its short-term financial obligations. Current assets Current liabilities Current ratio = Is there a sufficient amount of current assets to pay off current liabilities? What is the cushion of safety? Accountant’s rule: 2:1 Efficient use of financial resources

25. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Liquidity ratios — acid-test ratio (速動比率) Current assets - inventory Current liabilities Acid-test ratio = What happens to the firm’s ability to repay current liabilities after the least liquid of the current assets is subtracted? Accountant’s rule: 1:1 Efficient use of financial resources

26. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets 汽車經銷商 vs. 電腦零售商→流動比率 vs. 速動比率 Discussion Efficient use of financial resources

27. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Leverage ratios (槓桿比率) — debt-equity ratio (負債對淨值比率或負債比率) Leverage ratios: Measures of the degree to which a firm relies on borrowed funds in its operations. Total liabilitiesowners equity Debt-equity ratio = What proportion of the firm’s equity are financed with debt? Efficient use of financial resources

28. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Leverage ratios— times interest earned ratio (利息保障倍數) (Earnings before interest & taxes, ebit) Ebit _ Interest expense Times interest earned ratio = • What is the margin of safety in the ability to repay interest payments? • It’s a measure of safety in that it tells management how far profits can decline before it would be unable to meet its interest expenses. • The higher the ratio, the greater the margin of safety. Efficient use of financial resources

29. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Profitability ratios (獲利性比率)— return on sales ratio (銷售報酬率或營業淨利率) Profitability ratios:Measures of how effective a firm is at using its resources to achieve profits. Net income Net sales Return on sales ratio = What is the amount of net profit for each dollar of sales? Are total costs too high? Efficient use of financial resources

30. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Profitability ratios— return on equity ratio (淨值報酬率) Net income Owners equity Return on equity ratio = What is the relationship between investment and profits? Is the firm cost efficient and productive? Efficient use of financial resources

31. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Profitability ratios— earnings per share (每股盈餘) Net income # Of shares Earnings per share = Has large influence on a stock's market price Efficient use of financial resources

32. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Activity ratios (經營比率)— inventory turnover ratio (存貨週轉率) Activity ratios: Measures how effectively the firm is utilizing its resourcesto generate sales volume Cost of goods sold Average inventory Inventory turnover ratio = Compare to industry norms. Is the current level of inventoryappropriate, given the firm's current level of sales? Efficient use of financial resources

33. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Activity ratios— asset turnover ratio (總資產週轉率) Net sales Total assets Asset turnover ratio = Compare to industry norms. Is the firm using all of its assets effectively to generate sales? Efficient use of financial resources

34. 重要財務比率與說明 —獲利能力分析 Efficient use of financial resources

35. 重要財務比率與說明 —經營效能分析

36. 重要財務比率與說明 —償債能力分析 Efficient use of financial resources

37. 重要財務比率與說明 —財務結構分析1 Efficient use of financial resources

38. 重要財務比率與說明 —財務結構分析2 Efficient use of financial resources

39. 問題 • 小明向我借一百萬，期限二個月，他是否有能力還？(流動比率或速動比率) • 融資建立高度自動化之生產線，但是利息負擔沉重…!(利息保障倍數) • 天天都便宜…是否是個好對策？(銷售報酬率) • 研究所選世選新還是選大葉？(資產報酬率) • ㄨㄨ股票是否值得買？(淨值報酬率) • ㄨㄨ股票會不會突爆跌？(本益比)… Efficient use of financial resources

40. The power of ratios lies in comparing themwith past ratios for the firm itself and comparing the firm’s ratios to other companies in its industry.

41. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Meaning A quantitative plan for allocating resources to specific activities. Budgets Efficient use of financial resources

42. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Types of budgets • Revenue budgets Projects future sales • Expense budgets Lists the primary activities undertaken and allocates a dollar amount to each • Profit budgets Combine revenue and expense budgets into one • Cash budgets Forecasts how much cash the business will have on hand and how much it will need • Capital expenditure budgets Assess capital needs and prioritize capital projects Efficient use of financial resources

43. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets 導入ERP所需之金額為何？(資本支出預算) 教育訓練的費用為何？(支出預算) 擴充產品線可帶來的實質效益為何？(收入預算) 交易的付款方式為何？是否有足夠資金…？(現金預算) Budgets — example Efficient use of financial resources

44. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Hiding inefficiencies Hindering change 問題 某國立大學校長因預算經費未全數消耗，被教育部糾正!!! The downside of budgets Efficient use of financial resources

45. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Incremental budget (累計式預算方式) A system of budgeting in which allocations are based on the budget for the previous period. Incremental budget vs. zero-base budgets1 Efficient use of financial resources

46. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets Zero-base budgets (零基預算) A system of budgeting in which requests for funds begin from scratch in each budget period, regardless of previous appropriations. Incremental budget vs. zero-base budgets2 Efficient use of financial resources

47. Budgeting skills1 • Review the organization’s overall strategy and goals. • Determine your unit’s goals and the means to attain them. • Decide the resourcesyou’ll need to accomplish your unit’s goals. • Gather cost information. Efficient use of financial resources

48. Budgeting skills2 • Share your goals and cost estimates with your manager. • Draw up your proposed budget. • Be prepared to negotiate. • Monitor your budget. • Take action if you’re not staying within budget. • Keep superiors informed of your progress. Efficient use of financial resources

49. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets 中長程發展計劃為何？ 使命、目標… 教育部補助款之額度？ 各老師、團隊提出需求計劃 優先順位之安排協調 編列預算… 問題討論 — ㄨㄨ系93學年度預算 Efficient use of financial resources

50. Accounting information Stakeholders Financial Statement Financial Ratio analysis Budget types Incremental & zero-based budgets International accounting issues Inflation rates Make it difficult to accurately evaluate assets Foreign currency exchange rates Can make or lose money merely through changes during the accounting period Consolidated statements Differing accounting practices around the world Efficient use of financial resources