dcf估值模型.docx

Appendix
Purchase-Price Accounting Adjustments and the "Cash Flow" Fallacy
 
First a short quiz: below are abbreviated 1986 statements of earnings for panies. Which business is the more valuable?
Company O
Company N
(000s Omitted)
Revenues……………………….
$677,240
$677,240
Costs of Goods Sold:
Historical costs, excluding depreciation…………………….
$341,170
$341,170
Special non-cash inventory costs…………………………….
4,979
(1)
Depreciation of plant and equipment ……………………...
8,301
13,355
(2)
349,471
359,504
$327,769
$317,736
Gross Profit …………………….
Selling & Admin. Expense........
$260,286
$260,286
Amortization of Goodwill .........
______
____595
(3)
260,286
260,881
Operating Profit .....................…
$ 67,483
$ 56,855
Other e, Net .................…
4,135
4,135
Pre-Tax e ......................…
$ 71,618
$ 60,990
Applicable e Tax:
Historical deferred and current tax ……………………………….
$ 31,387
$ 31,387
Non-Cash Inter-period Allocation Adjustment .............
______
_____998
(4)
31,387
32,385
Net e ............ $40,231 $28,605
======= =======
(Numbers (1) through (4) designate items discussed later in this section.)
As you've probably guessed, Companies O and N are the same business - Scott Fetzer. In the "O" (for "old") column we have shown what pany's 1986 GAAP earnings would have been if we had not purchased it; in the "N" (for "new") col