study guide for midterm 2

study guide for midterm 2 - Prepared by Mikhail Pevzner...

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Prepared by Mikhail Pevzner Chapter 13 Be able to construct a cash flow statement using the indirect method Understand how to treat non-cash transactions on cash flow statement Recommended Problems: P13-1, AP13-1, P13-5, Practice Problems on Blackboard Chapter 14 Know how Dupont de-composition works: relation between ROE, ROA, Financial Leverage, and between ROA, Profit Margin, and Asset Turnover; o ROE=ROA*Financial Leverage; ROA=Profit Margin*Asset Turnover Know the following ratios: o ROE o ROA o Profit Margin o Gross Margin/Gross Profit o Asset Turnover o Accounts Receivable Turnover o Days-in receivables o Inventory Turnover o Days in inventory o Accounts Payable Turnover o Days in Payables o Operating cycle o Cash cycle o Current ratio o Quick ratio o Times interest earned o Debt-to-equity/debt to assets o PE ratio Be able to understand differences among ratios among companies in different industries Understand what is meant by common size financial statements
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study guide for midterm 2 - Prepared by Mikhail Pevzner...

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