Ch2 slides - 2-1Using the Financial StatementsUsing the...

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Unformatted text preview: 2-1Using the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsProfitability ratiosmeasure the operating success of a company for a given period of time.Using the Income StatementIllustration 2-102-2Using the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsIllustration:Earnings per share (EPS)measures the net income earned on each share of common stock. Profitability Ratio$1,003(414- $0+ 411)2= $2.43$1,407(411- $0+ 481)2= $3.15Illustration 2-11Best Buy2-3Using the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsUsing the Financial StatementsUsing the Statement of Stockholders EquityMost companies use a statement of stockholders equity, rather than a retained earnings statement, so that they can report all changes in stockholders equity accounts.Illustration 2-122-4The Classified Balance SheetThe Classified Balance SheetThe Classified Balance SheetThe Classified Balance SheetPresents a snapshot at a point in time.To improve understanding, companies group similar assets and similar liabilities together.Illustration 2-1Standard Classifications2-5Illustration 2-2The Classified Balance SheetThe Classified Balance SheetThe Classified Balance SheetThe Classified Balance Sheet2-6Illustration 2-2The Classified Balance SheetThe Classified Balance SheetThe Classified Balance SheetThe Classified Balance Sheet2-7...
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Ch2 slides - 2-1Using the Financial StatementsUsing the...

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