Exam 2 Flashcards
1
Q
Components of the multi step IS
A
Sales
COGS
Operating Exp
Non-operating items
Income tax
Net Income
2
Q
Earnings per share
A
NI - preferred div / preferred dividends
3
Q
Gross Profit
A
Rev - cogs
4
Q
Income before operations
A
Gross profit - sell and admin exp
5
Q
Income before tax
A
Income before operation + gains - write offs
6
Q
Net income
A
Income before tax - ((losses)*tax rate)
7
Q
Usefulness of Balance sheet
A
- computing rates of return
- evaluating capital structure
- assess risk and future cash flows
- analyze companies liquidity, solvency, financial flexibility
8
Q
Questions statement of cash flows answers
A
- where did the cash come from
- what was the cash used for
- what was the change in the cash balance
9
Q
Statement of cash flows
A
Provide relevant info about the cash receipts and cash payments of an enterprise during the period
