Financial Statement and Cash Flow Flashcards
1
Q
Capitalized Value
A
Projected flow of income from business converted to PV:
Annual income/capitalization rate
2
Q
Pro Forma Statement
A
Projects the expected profitability or return of the next year or longer. Estimated excess income over expenses.
Compare to results at year end!
3
Q
How much should a family ideally save?
A
5-8% of gross income
4
Q
How much should a family ideally save?
A
5-8% of gross income