Ch 3 - Sample Balance Sheet 2009 2008 2009 2008 Cash 696 58...

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Unformatted text preview: Sample Balance Sheet 2009 2008 2009 2008 Cash 696 58 A/P 307 303 A/R 956 992 N/P 26 119 Inventory 301 361 Other CL 1,662 1,353 Other CA 303 264 Total CL 1,995 1,775 Total CA 2,256 1,675 LT Debt 843 1,091 Net FA 3,138 3,358 C/S 2,556 2,167 Total Assets 5,394 5,033 Total Liab. & Equity 5,394 5,033 Numbers in millions of dollars 3-1 23-2 Sample Income Statement Revenues 5,000 Cost of Goods Sold 2,006 Expenses 1,740 Depreciation 116 EBIT 1,138 Interest Expense 7 Taxable Income 1,131 Taxes 442 Net Income 689 EPS 3.61 Dividends per share 1.08 Numbers in millions, except EPS & DPS 33-3 Accounting Sources & Uses of Cash Statement • Skip • page 47 ( Sources and Uses of Cash) • to page 51 (Standardized Financial Statements) 43-4 Standardized Financial Statements • Common-Size Balance Sheets • Compute all accounts as a percent of total assets • Common-Size Income Statements • Compute all line items as a percent of sales • Standardized statements make it easier to compare financial information, particularly as the company grows • They are also useful for comparing companies of different sizes, particularly within the same industry 53-5 Ratio Analysis • Ratios also allow for better comparison through time or between companies • Ratios are used both internally and externally 63-6 Categories of Financial Ratios • Short-term solvency or liquidity ratios • Long-term solvency or financial leverage ratios • Asset management or turnover ratios • Profitability ratios • Market value ratios 73-7 Computing Liquidity Ratios • Current Ratio = CA / CL • 2256 / 1995 = 1.13 times • Quick Ratio = (CA – Inventory) / CL • (2256 – 301) / 1995 = .98 times(2256 – 301) / 1995 = ....
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This note was uploaded on 03/30/2010 for the course FMIS 3601 taught by Professor Vizanko during the Spring '08 term at University of Minnesota Duluth.

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Ch 3 - Sample Balance Sheet 2009 2008 2009 2008 Cash 696 58...

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