Analysis of Financial Statement
CFIN4
ANALYSIS OF FINANCIAL
STATEMENTS
1/21/15
CHAPTER 2
1
1.
2.
Describe the basic financial information that is produced by corporations and explain how the firm’s stakeholders use such information. Describe the financial statements that corporations publish and the information that each statement provides.
2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
LEARNING OUTCOMES
3.
4.
Describe how ratio analysis should be conducted and why the results of such an analysis are important to both managers and investors.
Discuss potential problems
(caveats) associated with financial statement analysis.
3
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
LEARNING OUTCOMES
(CONT.)
Discussion
Statements
Financial
a letter from the chairman
Usually
of Operations
The
Income Statement
The Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
THE ANNUAL REPORT
The
Balance Sheet
The Income Statement
Statement of Cash Flows
Statement of Retained Earnings
5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
FINANCIAL STATEMENTS
ANALYSIS OF FINANCIAL
STATEMENTS
1/21/15
CHAPTER 2
1
1.
2.
Describe the basic financial information that is produced by corporations and explain how the firm’s stakeholders use such information. Describe the financial statements that corporations publish and the information that each statement provides.
2
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
LEARNING OUTCOMES
3.
4.
Describe how ratio analysis should be conducted and why the results of such an analysis are important to both managers and investors.
Discuss potential problems
(caveats) associated with financial statement analysis.
3
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
LEARNING OUTCOMES
(CONT.)
Discussion
Statements
Financial
a letter from the chairman
Usually
of Operations
The
Income Statement
The Balance Sheet
Statement of Cash Flows
Statement of Retained Earnings
4
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
THE ANNUAL REPORT
The
Balance Sheet
The Income Statement
Statement of Cash Flows
Statement of Retained Earnings
5
© 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
FINANCIAL STATEMENTS