FIN301_Ch2

FIN301_Ch2 - Chapter 2 Financial Statements, Taxes, and...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 2 Financial Statements, Taxes, and Cash Flow
Background image of page 1

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

View Full DocumentRight Arrow Icon
2-2 2 Chapter Outline The Balance Sheet The Income Statement Taxes Cash Flow
Background image of page 2
2-3 3 The Balance Sheet The balance sheet is a snapshot of the firm’s assets and liabilities at a given point in time Assets are listed in order of liquidity Ease of conversion to cash Without significant loss of value Balance Sheet Identity Assets = Liabilities + Stockholders’ Equity
Background image of page 3

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

View Full DocumentRight Arrow Icon
2-4 4 Basic Structure of the Balance Sheet
Background image of page 4
2-5 5 U.S. Corporation Balance Sheet –  Table 2.1
Background image of page 5

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

View Full DocumentRight Arrow Icon
2-6 6 Market vs. Book Value The balance sheet provides the book value of the assets, liabilities, and equity. Market value is the price at which the assets, liabilities or equity can actually be bought or sold. Market value and book value are often very different. Why? Which is more important to the decision-making process?
Background image of page 6
2-7 7 Klingon Corporation KLINGON CORPORATION Balance Sheets Market Value versus Book Value
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/06/2008 for the course FIN 301 taught by Professor Andelin,stevenle during the Spring '07 term at Penn State.

Page1 / 12

FIN301_Ch2 - Chapter 2 Financial Statements, Taxes, and...

This preview shows document pages 1 - 8. Sign up to view the full document.

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