BUS 420 Chapter_07

BUS 420 Chapter_07 - Chapter 7 Chapter Accounting for...

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Chapter 7 Chapter 7 Accounting for Financial Management 1
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Focus Areas Focus Areas 1. Income statement 2. Balance sheet 3. Statement of cash flows 4. Accounting income versus cash flow 5. MVA and EVA 6. Corporate taxes 2
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What effect did the expansion have on sales and net income? have on sales and net income? (a) (a) Sales increased by over $2.4 million. Costs increased by more than sales. Net income was negative. However, the firm received a tax refund since it paid taxes of more than $63,424. Carryback opportunities 3
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Changes…. Changes…. Effect of expansion on Assets (a) What effect did the expansion have on liabilities & equity? (a) 4
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Summary of Statement of CF Summary of Statement of CF Net cash provided (used) by ops. ($  503,936) Net cash to acquire FA (683,350) Net cash prov. (used) by fin. act. 1,185,568 Net change in cash (1,718) Cash at beginning of year 9,000 Cash at end of year $     7,282 5 What can you conclude from the statement of cash flows? (b)
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What is free cash flow (FCF)? Why is it important? (c) Why is it important? (c) What are the five uses of FCF? What are the five uses of FCF? (c) (c) FCF is the amount of cash available from operations for distribution to all investors (including stockholders and debtholders) after making the
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This note was uploaded on 02/14/2012 for the course BUS 420 taught by Professor Poindexter during the Spring '08 term at N.C. State.

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BUS 420 Chapter_07 - Chapter 7 Chapter Accounting for...

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