MGMT310_lecture2 - Lecture Lecture2 Today we will discuss...

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cture 2 Lecture 2 Today we will discuss… Course syllabus FAQs hat e urpose f is urse? What is the purpose of this course? Basic terminology used throughout course (and life)
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Financial statements Corporate reports provide important information: Balance Sheet snapshot of the firm A snapshot of the firm Income Statement Measures performance over time ash flows Cash flows Describes the health of the firm
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Balance sheet Current Net orking Current Assets Liabilities Working Capital (NWC) Long-Term Debt Fixed Assets Shareholders’ Equity Total Assets = Total Liabilities + Shareholders’ Equity
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Balance sheet considerations Liquidity Speed and ease of converting an asset to cash Debt vs. Equity Debt has precedence over equity to a firm’s cash flows Debt is referred to as financial leverage Market Value vs. Book Value Under GAAP, financial statements list assets at what they originally cost, not at their current market values.
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This note was uploaded on 02/04/2011 for the course MGMT 310 taught by Professor Matthewjamesbarcaskey during the Spring '08 term at Purdue University-West Lafayette.

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MGMT310_lecture2 - Lecture Lecture2 Today we will discuss...

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