CHAPTER 2 – REVIEWING FINANCIAL STATEMENTS Questions LG1 1. List and describe the four major financial statements. The four basic financial statements are: 1. The balance sheet reports a firm’s assets, liabilities, and equity at a particular point in time. 2. The income statement shows the total revenues that a firm earns and the total expenses the firm incurs to generate those revenues over a specific period of time—generally one year. 3. The statement of cash flows shows the firm’s
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|Classifying investing, financing, and |3, 4, 5, 6, |1, 2, 3, |1, 2, 10, 16 | |1, 3, 4, 5 | | |operating activities. |16, 17, 19 |6, 7, | | | | | | | |8, 12 | | | | |3. |Direct vs. indirect methods of preparing|9, 20
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Shipping Trade & Finance 2011/2012 Alternative Sources of raising capital in shipping corporations: Bridging the Funding Gap By Linos Alexandros Kogevinas 100021584 Supervisor: Dr. Giovanni Cespa Acknowledgments Having completed a rather long, but enjoyable year at Cass Business School , I feel obligated to thank a few people who helped me along the way. Firstly, I’d like to offer my most sincere thanks to my supervisor, Dr. Giovanni Cespa for accepting to supervise me and putting me
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CHAPTER 2 – REVIEWING FINANCIAL STATEMENTS Questions LG1 1. List and describe the four major financial statements. The four basic financial statements are: 1. The balance sheet reports a firm’s assets, liabilities, and equity at a particular point in time. 2. The income statement shows the total revenues that a firm earns and the total expenses the firm incurs to generate those revenues over a specific period of time—generally one year. 3. The statement of cash flows shows the firm’s
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composition of assets and the level and structure of financing. In order to make right decision, it is necessary to have a clear understanding of the objectives. Such an objective provides a framework for right kind of financial decision making. The objectives are concerned with designing a method of operating the Internal Investment and financing of a firm. There are two widely applied approaches, viz. (a) profit maximization and (b) wealth maximization. The term 'objective' is used in the sense of an object
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to: 1 Understand the advantages and disadvantages of buying an existing business. 2 List the steps involved in the right way to buy a business. 3 Describe the various methods used in valuing a business. 4 Discuss the process of negotiating the deal. Buying an Existing Business Although our intellect always longs for clarity and certainty, our nature often finds uncertainty fascinating. —Karl von Clausewitz A pessimist sees the difficulty in every opportunity: an optimist sees the
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budgeting and capital structure decisions in depth. The responses to these questions enabled us to explore whether and how these corporate policies are interrelated. For example, we investigated whether companies that made more aggressive use of debt financing also tended to use more sophisticated capital budgeting techniques, perhaps because of their greater need for discipline and precision in the corporate investment process. More generally, the design of our survey allowed for a richer understanding
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MANAGEMENT” DEPARTMENT “FINANCE, ACCOUNTING AND AUDITING” SUBJECT – FINANCIAL MANAGEMENT TERM PAPER “Methods of optimization of cash flows of the company” Done by: Klimov Kirill 4rt year student, Finance, 1202 Checked by: d.ec.sc.,Yelubayeva Zh.M.
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overall low debt policy, whereby they obtain infrequent short term loans and avoid long term debt. Furthermore with the appointment of Mr. Evans as president, the company became more profitable and experienced internal growth through intensive marketing and computerisation of operations. In order for the company to continue expanding its revenues the president Mr. Evans advocated the acquisition of Midland Freight. External financing of $50 million would be required to accomplish this goal. However
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CAPITAL INVESTMENTS: MODELS USED IN DECISION MAKING Capital investments are long-term investments made by companies to eventually enhance profitability and shareholder value. Capital investments normally last a company for a number of years, and they take longer periods of time to implement or enhance within an organization. Some examples of capital investments include, but are not limited too: automation in factories (equipment and software), research and development, equipment to improve
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