Page 49 - Financial Statement Analysis

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26 Financial Statement Analysis

Exhibit 1.9 Financial Statement Links—Colgate

Statement of Cash Flows
For Year Ended Dec. 31, 2006
Operating cash flows $ 1,822
Investing cash flows (620)
Financing cash flows (1,059)
Exchange rate changes on cash
Balance Sheet and cash equivalents 7 Balance Sheet
Dec. 31, 2005 Net increase in cash and cash Dec. 31, 2006
Assets equivalents $ 149 Assets
Cash Jan. 1, 2006 341
Cash and cash equivalents $ 341 Cash Dec. 31, 2006 Cash and Cash equivalents $ 490
Noncash assets 8,166 $ 490 Noncash assets 8,648
Total $ 8,507 Total Assets $ 9,138
Income Statement
Liabilities and Equity Liabilities and Equity
For Year Ended Dec. 31, 2006
Total liabilities $ 7,157 Total Liabilities $ 7,727
Equity Net sales $ 12,238 Equity
Cost of sales and expenses
(10,885)
Share capital 2,051 Share capital 2,174
Retained earnings 8,968 Net income $ 1,353 Retained earnings 9,644
Accumulated other comp inc (1,805) Accumulated Other Comp inc (2,081)
Other (283) Statement of Shareholders’ Equity Other (251)
Treasury stock, at cost (7,581) Treasury stock, at cost (8,074)
Total shareholder’s equity 1,350 Balance, Dec. 31, 2005 2051 Total shareholder’s equity 1,411
Total $ 8,507 Shares issued for stock options 108 Total liabilities and
Stock-based compensation 117 shareholder’s Equity $ 9,138
Decrease in preference shares (31)
Other (71)
Balance, Dec. 31, 2006 2174
Retained earnings, Dec. 31, 2005 8968
Add: net income 1353
Less: dividends (678)
Retained earnings, Dec. 31, 9644
2006
Acc compr inc Dec. 31, 2005 (1,805)
Point in time
Other Comprehensive income (276) Point in time
Acc compr Inc Dec. 31, 2006 (2,081)
Treasury stock, Dec. 31, 2005 (7581)
Treasury stock issued 392
Treasury stock repurchased
Treasury stock repurchased (885)
Treasury stock, Dec. 31, 2006 (8074)
Period of time

Additional Information
Financial statements are not the sole output of a financial reporting system. Additional
EDGAR WHO? information about a company is also communicated. A thorough financial statement
EDGAR is the database analysis involves examining this additional information.
of documents that public
companies are required Management’s Discussion and Analysis (MD&A). Companies with publicly
to file electronically with traded debt and equity securities are required by the Securities and Exchange
the SEC. Several websites
Commission to file a Management’s Discussion and Analysis (MD&A). Manage-
offer easy-to-use interfaces
ment must highlight any favorable or unfavorable trends and identify significant
(most are free), making it
a snap to find most public events and uncertainties that affect a company’s liquidity, capital resources, and
info on a company—see results of operations. They must also disclose prospective information involving
www.freeedgar.com, or material events and uncertainties known to cause reported financial information
www.edgar-online.com.
to be less indicative of future operating activities or financial condition. The
MD&A for Colgate shown in Appendix A includes a year-by-year analysis along
with an evaluation of its liquidity and capital resources by business activities.