Question: As you read the balance sheet from top to bottom, what is happening to the liquidity of the assets?

Slides:

Advertisements

Similar presentations

Financial Statements, Taxes, and Cash Flows

Advertisements

Ch. 2 - Understanding Financial Statements, Taxes, and Cash Flows , Prentice Hall, Inc.

McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved CHAPTER 2 Financial Statements and Cash Flow.

DES Chapter 6 1 Projecting Consistent Financial Statements.

Chapter 2 - Understanding Financial Statements, Taxes, and Cash Flows  2005, Pearson Prentice Hall.

Question Answer Accounting I Debits & Credits Analyzing.

Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Slide 3-1 Balance Sheet and Statement of Cash Flows Chapter.

GLENCOE / McGraw-Hill.

2006 Cash Flow Statement Sources of cash: Beginning cash balance Cash receipts from product sales Other sources of cash Total sources of cash Uses of cash:

© 1999 by Robert F. Halsey Agenda Review Accrual Basis Income Statements Importance of Cash Flow Preparation of Statement of Cash Flows Interpretation.

© 1999 by Robert F. Halsey In this chapter, we will cover the four financial statements that are provided by companies to shareholders and other interested.

© The McGraw-Hill Companies, Inc., 2006 McGraw-Hill/Irwin Reporting the Statement of Cash Flows(refer to HOU’s) Chapter 16.

© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin 16-1 Reporting the Statement of Cash Flows Chapter 16.

Income Statement and Balance Sheet

Managerial Accounting Structure of Financial Statements.

McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Financial Statements, Taxes, and Cash Flow Chapter 2.

UNDERSTANDING BALANCE SHEET 1Đặng Thị Thu Hằng. ELEMENTS OF THE BS The balance sheet: reports the firm’s financial position at a point in time. The BS.

FINANCIAL STATEMENTS.

Chapter 2 Financial Statements.

McGraw-Hill /Irwin© 2009 The McGraw-Hill Companies, Inc. THE STATEMENT OF CASH FLOWS REVISITED Chapter 21.

The Balance Sheet Crow River Investment Club May 13, 2003.

FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance 1.

0 Accounting Statements and Cash Flow. 1 Chapter Outline 2.1 The Balance Sheet 2.2 The Income Statement 2.3 Net Working Capital 2.4 Financial Cash Flow.

Financial Information and Accounting Concepts

Financial Statement Analysis I: Chapter 2 ©NACM. General Chapter Notes A. Debtor’s Decisions, An Example: Legal Form of the Debtor 1. What Legal Form.

2-0 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Financial Statements and Cash Flow Chapter 2.

Chapter 2 Introduction to Financial Statement Analysis

Statement of Cash Flows The Statement of Cash Flows provides relevant information about the cash receipts and cash payments of an enterprise during a period.

Accounting and Financial Decisions

The Statement of Cash Flows Cash, liquidity, and the cash flow cycle The cash flow statement preparing a cash flow statement –It’s as easy as 1,2,3.

Chapter 2 - Understanding Financial Statements, Taxes, and Cash Flows 09/02/08.

Accounting Principles, Ninth Edition

Intro to Financial Management Understanding Financial Statements and Cash Flows.

Classified Balance Sheet Data grouped according to major categories Makes it easier to analyze the information on the balance sheet.

Financial Puzzle FINANCIAL STATEMENTS By PresenterMedia.com PresenterMedia.com.

1 Chapter 12 The Statement of Cash Flows Financial Accounting, Alternate 4e by Porter and Norton.

Chapter 2 Financial Statements.

©2012 McGraw-Hill Ryerson Limited Learning Objectives 1.Prepare and analyze the four basic financial statements. (LO1) 2.Examine the limitations of the.

13-1 Preview of Chapter 13 Financial and Managerial Accounting Weygandt Kimmel Kieso.

Long-Term Liabilities: Notes, Bonds, and Leases Presentations for Chapter 11 by Glenn Owen.

Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Financial Statement Analysis K R Subramanyam John J Wild.

Chapter 2 Introduction to Financial Statement Analysis.

©2012 McGraw-Hill Ryerson Limited 1 of 34 Learning Objectives 1.Calculate 13 financial ratios that measure profitability, asset utilization, liquidity.

McGraw-Hill/Irwin Corporate Finance, 7/e © 2005 The McGraw-Hill Companies, Inc. All Rights Reserved. 2-0 CHAPTER 2 Accounting Statements and Cash Flow.

Chapter 2 Introduction to Financial Statement Analysis.

Preparing Financial Documents The Income Statement & Balance Sheet.

Financial Statements, Forecasts, and Planning

ACC 113 – Seminar Accrual Accounting Concepts. Accrual Accounting Transactions are recorded as they occur and thus affect the accounting equation (assets,

Chapter 3 - The Balance Sheet  The balance sheet provides a snapshot of the firm’s financial position on a specific date. It is defined by: Total Assets.

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

PREPARE THE FOUR FINANCIAL STATEMENTS 1. INCOME STATEMENT 2. RETAINED EARNINGS STATEMENT 3. BALANCE SHEET 4. CASH FLOW STATEMENT.

Chapter 12 Reporting and Interpreting the Statement of Cash Flows 1© McGraw-Hill Ryerson. All rights reserved.

Financial Statements and Closing Procedures Section 1: Preparing the Financial Statements Chapter 13 Section Objectives 1.Prepare a classified.

McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. 2-0 Corporate Finance Ross  Westerfield  Jaffe Seventh Edition.

STATEMENT OF CASH FLOWS Prepared by James R. Reap

Chapter Outline 2.1 The Balance Sheet 2.2 The Income Statement

Basics of financial management Chapter 16

Corporate Finance Lecture 5

Chapter 2: The Financial Statements

Chapter 2 - Understanding Financial Statements, Taxes, and Cash Flows

There is no “Bob” narration on this series of slides (yea!)

Statement of Cash Flows

Chapter 3 Financial Statements

Financial Analysis Quick ratio: ($22,000+ $41,500)/

Intro to Financial Management

Financial Statements, Cash Flow, and Taxes

Financial Records and Financial Statements

Financial Statements: Basic Concepts and Comprehensive Analysis

“Accounting is the Language of Business”

Presentation transcript:

Question: As you read the balance sheet from top to bottom, what is happening to the liquidity of the assets?

Question: The inventory will be listed on the balance sheet under which category?

Question: When raw material is finally produced into a product to be sold, what category is it listed under?

Question: What is the change in the equity section of the balance sheet when a firm reduces its accounts payable balance by using cash?

Question: If a bond the company issued matures between six and 12 months from today, how is the firm is required to list this?

Question: Using the Accounting equation, how would you calculate liabilities given only the balances for total assets and total equity?

Question: If the balance sheet lists liabilities as $5 million and shareholders equity as $8 million, what is the book value of the assets?

Question: The firm's net fixed assets are listed as zero, does this mean there are no property, plant or equipment? Explain.

A firm purchases Equipment costing $20,000. They received a really good deal on this equipment which normally would have cost them $30,000. They have decided the useful life of the equipment is 4 years. Calculate the balance in the accumulated depreciation account at the end of the second year of use.

A firm purchases Equipment costing $20,000. They received a really good deal on this equipment which normally would have cost them $30,000. They have decided the useful life of the equipment is 4 years. Calculate the book value of the equipment at the end of the second year of use.

A company borrows $12,000 at 12%. The fixed payment each month is $300. Calculate the interest expense and the principal pay- down in the second payment.

A company leases a piece of equipment. The cost of the equipment is $100,000 and has a useful life of 8 years. The lease lasts for 5 years, the company may buy the equipment at fair market value at the end of the lease and the total value of the principal payments on the lease equals $80,000. Is this a capital lease or an operating lease and why?