IM Chapter 3 Working with Financial Statements

IM Chapter 3 Working with Financial Statements - Chapter 3...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 WORKING WITH FINANCIAL STATEMENTS SLIDES 3.1 Key Concepts and Skills 3.2 Chapter Outline 3.3 Sample Balance Sheet 3.4 Sample Income Statement 3.5 Sources and Uses 3.6 Statement of Cash Flows 3.7 Sample Statement of Cash Flows 3.8 Standardized Financial Statements 3.9 Ratio Analysis 3.10 Categories of Financial Ratios 3.11 Computing Liquidity Ratios 3.12 Computing Long-Term Solvency Ratios 3.13 Computing Coverage Ratios 3.14 Computing Inventory Ratios 3.15 Computing Receivables Ratios 3.16 Computing Total Asset Turnover 3.17 Computing Profitability Measures 3.18 Computing Market Value Measures 3.19 Deriving the DuPont Identity 3.20 Using the DuPont Identity 3.21 Expanded DuPont Analysis – Aeropostale Data 3.22 Aeropostale Extended DuPont Chart 3.23 Why Evaluate Financial Statements 3.24 Benchmarking 3.25 Real World Example - I 3.26 Real World Example – II 3.27 Real World Example – III 3.28 Potential Problems 3.29 Work the Web Example 3.30 Quick Quiz
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A-30 CHAPTER 3 CHAPTER WEB SITES Section Web Address 3.1 www.financials.com finance.yahoo.com moneycentral.msn.com 3.3 www.investor.reuters.com perspectives.org www.onlinewbc.gov www.sternstewart.com www.chalfin.com 3.5 www.naics.com End-of-chapter material www.mhhe.com/edumarketinsight disney.go.com www.mmm.com www.walmart.com www.boeing.com CHAPTER ORGANIZATION 3.1 Cash Flow and Financial Statements: A Closer Look Sources and Uses of Cash The Statement of Cash Flows 3.2 Standardized Financial Statements Common-Size Statements Common-Base Year Financial Statements: Trend Analysis Combined Common-Size and Base-Year Analysis 3.3 Ratio Analysis Short-Term Solvency, or Liquidity, Measures Long-Term Solvency Measures Asset Management, or Turnover, Measures Profitability Measures Market Value Measures 3.4 The DuPont Identity A Closer Look at ROE An Expanded DuPont Analysis 3.5 Using Financial Statement Information Why Evaluate Financial Statements? Choosing a Benchmark Problems with Financial Statement Analysis 3.6 Summary and Conclusions
Background image of page 2
CHAPTER 3 A-31 ANNOTATED CHAPTER OUTLINE Slide 3.1 Key Concepts and Skills Slide 3.2 Chapter Outline Lecture Tip, page 49: Students sometimes get the impression that accounting data is useless because care must be used when some of the results are interpreted. They sometimes ask why we bother with financial statement analysis at all. Robert Higgins provides a good answer to this question: “objectively determinable current values of many assets do not exist. Faced with a trade-off between relevant, but subjective current values, and irrelevant, but objective historical costs, accountants have opted for irrelevant, but objective historical costs. This means that it is the user’s responsibility to make adjustments” Financial statement information is often our ONLY source of information. Consequently, we use the information we have and make adjustments where appropriate. 3.1.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/29/2008 for the course FINANCE FIN2010 taught by Professor -- during the Spring '08 term at CUHK.

Page1 / 18

IM Chapter 3 Working with Financial Statements - Chapter 3...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online