Chapter 3 finicial mamgment questions .docx - Vladimir Burnusuz Chapter 3 Questions 1 Balance Sheet Income Statement Statement of Cash Flows Statement

Chapter 3 finicial mamgment questions .docx - Vladimir...

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Vladimir Burnusuz Chapter 3 Questions 9-13-2019 1. Balance Sheet, Income Statement, Statement of Cash Flows, Statement of stockholders Equity 2. Bankers and investors use financial statements to make intelligent decisions of weather to loan/invest their money into this firm these statements are meant to represent how they operate and show there day to day financials. 3. No, because the retained earnings would probably not be held as cash. The retained earnings figure represents the reinvestment of earnings by the firm. So part of the 20 million will be reinvested within the firms assets 5. Investors need to be cautious when they review financial statements. Even though companies are required to follow GAAP it does not mean the rules do get followed there have been many
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Unformatted text preview: executives that have gone to jail for there accounting practices 7. Free cash flow is the amount of cash that could be withdrawn from the firm without harming its ability to operate and to produce future cash flows. Which means it a lot more beneficial for investors to look at because free cash shows how much money that is available to be redistributed to stockholders 11. Double Taxation is when a corporation’s income is taxed and then is taxed again when shareholders receive the money income could be subjected to triple taxation if dividends are paid to a corporation not a person...
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  • Spring '14
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