Final Cards Flashcards
Quick Assets
cash, marketable securities, and accounts receivable
Earnings Per Share
Net Income / Average number of common stock outstanding
states the net income of a corporation on a per share of common stock basis
Dividend Yield Ratio
Dividends per share / market price per share
measures the dividend return on the current price of the stock
Economic Return from investing
(dividends and interest received + change in fair value) / fair value of investments (beginning of period)
measures the performance of a company’s securities portfolios. Investment returns include both dividends received and any change in the fair value. A high or rising ratio suggests that a firm’s securities portfolio is improving
Quality of Income Ratio
Cash Flow from Operating Activities / Net Income
indicates what portion of income was generated in cash
Capital Acquisitions Ratio
Cash Flow from Operating Activities / Cash paid for PP&E
measures the ability to finance purchases of plant and equipment from operations
Stockholders’ Equity (Horizontal)
Contributed Capital, Retained Earnings, Total Stockholders’ Equity
Stockholders’ Equity (Vertical)
Beginning balance, additional stock issuances, Net income, dividends declared, Ending balance
Cash Collected from customers
sales revenue + decrease in accounts receivable
Operating cash flows (direct method)
cash collected from customers, cash collected for interest/dividends on investments, payments to suppliers of inventory, payments to suppliers of services, payments of income taxes
Collections of interest/dividends on investments
Interest/dividend revenue + decrease in interest/dividends receivable
Payments to suppliers of inventory
COGS + increase in inventory - increase in A/P
Payments to suppliers of services
Other expenses + Increase in prepaid expenses - increase in accrued expenses
Payments of income taxes
Income tax expense + increase in prepaid income taxes - increase in income taxes payable
