Exam 1 Study Material Flashcards
Assets=
Liabilities + Equities
Sales-COGS=
Gross Profit
Gross Profit- Operating expenses=
Operating income
Operating Income +- other income (expenses)=
Income before taxes
Income before taxes- tax expense=
Net income
ROE=
Net Income/Shareholder’s Equity
ROA=
Net Income/ Average total assets
Profit Margin
Net Income (Revenue-Cost)/Net Sales (Revenue)
Asset Turnover Ratio
Net Sales/Average total assets
MD&A
Management Discussion and Analysis, bias- what’s going on
Independent Auditor report
Fairly representing the organization, types: unqualified, qualified, adverse, disclaimer
Current Assets
Cash, cash equivalents, short-term investments, AR, inventory, prepaid expenses
Long-term Assets
PPE, long term investments, intangible and other assets (trademark, patent)
Current Liabilities
AP, Accrued liabilities, deferred revenue, short-term debt, current maturities of long-term debt
Net working capital
current assets-current liabilities
Non-current liabilities
long-term debt(notes, mortgages, bonds, debentures, and other long-term loans, non-current liabilities (more than a year)
Stockholder’s Equity (Contributed Capital)
Common stock, additional paid-in capital, preferred stock, treasury stock
