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Unformatted text preview: Financial Statements and Cash Flow FINC 3610 ‐ Yost Financial Statements and Cash Flow 22 Financial Statements • The Annual Report and Form 10 ‐ K – Balance Sheet – Income Statement – Statement of Cash Flows – Statement of Stockholders’ Equity • EDGAR – www.sec.gov 23 The Balance Sheet • The Balance Sheet Identity: • Liquidity – In the Balance Sheet – Pros and Cons of Liquid Assets 24 Financial Statements and Cash Flow FINC 3610 ‐ Yost The Balance Sheet • Market Value vs. Book Value – What is market value? – What is book value? Historical Cos • Historical Cost – Where on the balance sheet can we find the true (market) value of the firm? – How do we find the true (market) value of total stockholders’ equity? – What is the goal of the firm? 25 The Income Statement • • The Bottom Line: The Bottom Line: • GAAP – The Timing of Cash Flows – The Matching Principle – Non ‐ Cash Items (e.g., depreciation) 26 The Statement of Cash Flows • Cash Flow From ___________ Activities Cash Flow From Activitie • Cash Flow From ___________ Activities • Cash Flow From ___________ Activities 27 Financial Statements and Cash Flow...
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This note was uploaded on 12/11/2011 for the course FINC 3610 taught by Professor Yost during the Fall '08 term at Auburn University.
- Fall '08