Fundamentals of Financial Management (Concise 6th Edition)

60 Part 2 Fundamental Concepts in Financial Management subtract the sum of payables plus accruals from current assets, the diffe ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 61 If a company has problems, its stock price can fall below its book value ...

62 Part 2 Fundamental Concepts in Financial Management securities. These differences can cause two companies with identical oper ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 63 that depreciation is an annual charge against income that re" ects the e ...

64 Part 2 Fundamental Concepts in Financial Management Here is a line-by-line explanation of the statement shown in Table 3-3: a ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 65 receivables rose by $60 million in 2008, and that use of cash is shown a ...

66 Part 2 Fundamental Concepts in Financial Management r. Net decrease in cash. The net sum of the operating activities, investi ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 67 3 !5 STATEMENT OF STOCKHOLDERS’ EQUIT Y Changes in stockholders’ equity ...

68 Part 2 Fundamental Concepts in Financial Management 3-6 FREE CASH FLOW Thus far, we have focused on! nancial statements as th ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 69 EBIT(1 " T) is the after-tax operating income that would exist if the! r ...

70 Part 2 Fundamental Concepts in Financial Management What is free cash # ow (FCF)? Why is FCF an important determinant of a! r ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 71 the asset for less than one year, you will have a short-term gain or los ...

72 Part 2 Fundamental Concepts in Financial Management the 15% maximum rate is scheduled to increase to 20% after 2010. That’s s ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 73 (^17) The exclusion depends on the percentage of the paying company’s st ...

74 Part 2 Fundamental Concepts in Financial Management Of course, it is generally not possible to! nance exclusively with debt; ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 75 to be used to offset the pro! ts of another. (Similarly, one division’s ...

76 Part 2 Fundamental Concepts in Financial Management The primary purposes of this chapter were to describe the basic! nancial ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 77 Financial statements are based on generally accepted accounting principl ...

78 Part 2 Fundamental Concepts in Financial Management Balance Sheets as of December 31 2008 2007 Assets Cash and equivalents $ ...

Chapter 3 Financial Statements, Cash Flow, and Taxes 79 FINANCIAL STATEMENTS The Davidson Corporation’s balance sheet and income ...