This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Benchmarking Compares company results to set standard Goal is improvement Example: Company compares its common-size statements to an industry leader Learning Objective 4 Using the Statement of Cash Flows Helpful for finding weaknesses than gauging strength Cash flow signs of a healthy company Operations are the major source of cash Investing activities have more than purchases than sales of long-term assets Financing activities are not dominated by borrowing Other Measures Economic Value Added (EVA) Measures if operations have increased stockholder wealth Red Flags in Financial Statement Analysis Earnings problems Decrease in net income over several years Decreased cash flow Operating cash flow consistently less than net income...
View Full Document
This note was uploaded on 06/14/2011 for the course ACCOUNTING 23020 taught by Professor Na during the Spring '11 term at Kent State.
- Spring '11
- Financial Accounting