Questions
A company depreciates its fixed assets
over 5 years. A new tax law requires
depreciation over 10 years instead.
What happens to the companys
financial statements?
1) Taxes increase
2) Cash flowincreases
3) EBIT decreases
This kind of problem i
Key Concepts and Skills
Know the basic types of financial \
management decisions and the role of the
financial manager
Know the financial implications of the
different forms of business organization
Know the goal of financial management
Understand the con
Working With
Financial Statements
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Key Concepts and Skills
Understand sources and uses of cash and the
Statement of Cash Flows
Know how to standardize financiai statements for
comparison purposes
Know how to compute and interpret important
f
Comprehensive Problem
- You have $10,000 to invest for ve years.
o How much additional interest will you earn if the
investment provides a 5% annual return, when
compared to a 4.5% annual return?
- How long will it take your $10,000 to double