Lecture_02_student

Lecture_02_student - Lecture 2: Accounting for Financial...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Lecture 2: Accounting for Financial Statement: I
Background image of page 1

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

View Full DocumentRight Arrow Icon
Click to edit Master subtitle style Topics in Chapter Balance sheet Income statement Statement of cash flows Modifying accounting data for managerial decisions: I
Background image of page 2
Click to edit Master subtitle style Financial Statements and Reports Annual Reports Balance sheet, income statement, statement of retained earnings, statement of cash flows Report what has actually happened to assets, earnings, and dividend. Used by investors to form expectations about future earnings and dividends. Where to find them? WSJ, Yahoo Finance, SEC EDGAR, etc.
Background image of page 3

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

View Full DocumentRight Arrow Icon
Click to edit Master subtitle style Balance Sheet: MicroDrive Inc.
Background image of page 4
Click to edit Master subtitle style Balance Sheet Snapshot of a firm’s assets, liability and equity Left hand side in the order of liquidity Right hand side in the order of payment Balance Sheet Identities: Total Assets = Total Liabilities + Total Equity Total Assets = Current Assets + Fixed Assets Total Liabilities = Current Liabilities + Long-term Liabilities Total Equity = Common Stocks + Preferred Stocks + Retained Earnings
Background image of page 5

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

View Full DocumentRight Arrow Icon
Click to edit Master subtitle style Question Qn: A firm has $8 million total assets, $3 million current liabilities, $2 million long- term liabilities, $1 million preferred stock The firm has common equity of __ million
Background image of page 6
Click to edit Master subtitle style Income Statement
Background image of page 7

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

View Full DocumentRight Arrow Icon
Click to edit Master subtitle style Income Statement EBITDA: earnings before interest, taxes, depreciation, and amortization. EBIT: Income before interest and taxes
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 22

Lecture_02_student - Lecture 2: Accounting for Financial...

This preview shows document pages 1 - 9. Sign up to view the full document.

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