{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture_Notes_-_Assign_10

Less increase in current assets and decrease in

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Less increase in current assets and decrease in current liabilities Add depreciation and losses Subtract gains 2. Investing Subtract purchase cost of fixed assets/investments Add sales price of fixed assets/investments 3. Financing Add issue price of bonds/stocks Subtract redemption of bonds Subtract interest/dividends paid Dividends paid = beginning dividends + declared dividends – ending dividends The total of these three categories will equal the change in cash.
Background image of page 1

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

View Full Document Right Arrow Icon
Chapter 15 Ratios Solvency – Ability to pay debt 1. Working capital = current assets – current liabilities Should be positive 2. Current ratio = current assets – current liabilities Should be greater than 1 3. Quick ratio = quick assets – current liabilities Quick assets are current assets less inventory and prepaids Accounts Receivable Analysis- Ability to collect cash 3. Accounts receivable turnover = net sales/average accounts receivable average accounts receivable = (begin A/R + ending A/R)/2 Should be: around 12 if monthly billing (cell phone bill) around 4 if quarterly
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 3

Less increase in current assets and decrease in current...

This preview shows document pages 1 - 3. Sign up to view the full document.

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