BUSF_A01.qxd

Chapter 3 • Financial statements and their interpretation Jackson plc Accounting ratios for the years ended 31 December 2007 200 ...

Ratio analysis Thus the price in 2007 reflected the future, rather than the 2007 profits, which were used in the calculation of ...

Chapter 3 • Financial statements and their interpretation Problems with accounting figures Earlier in the chapter, we considered ...

Ratio analysis transaction, or event, differently from another. This creates yet another problem for the analyst when trying to ...

Chapter 3 • Financial statements and their interpretation 3.7 Using accounting ratios to predict financial failure One objective ...

Summary Financial statements of three kinds are produced by the typical UK business lIncome statement – summarises operating per ...

Chapter 3 • Financial statements and their interpretation Most books on accounting provide an introduction to accounting and to ...

Problems (Problems 3.1 and 3.2 are basic-level problems, whereas problems 3.3 to 3.6 are more advanced and may contain some prac ...

Chapter 3 • Financial statements and their interpretation 3.3*The following are the financial statements of Persona Ltd for last ...

Problems 3.4 The following is the balance sheet (in abbreviated form) of Projections Ltd for last year: Balance sheet as at 31 D ...

Chapter 3 • Financial statements and their interpretation 3.5*The following are the financial statements of Prospect plc for las ...

Problems Calculate the following financial ratios for Prospect plc for last year and this year. (Use year-end figures where bala ...

Chapter 3 • Financial statements and their interpretation There are sets of multiple-choice questionsand missing-word questions ...

Appendix: Jackson plc’s 2007 financial statements sheet for Appendix: Jackson plc’s income statement and balance for 2007 Jackso ...

Chapter 3 • Financial statements and their interpretation Jackson plc Balance sheet as at 31 December 2007 Cost Depreciation £ m ...

Investment decisions Investment decisions are at the heart of the management of all businesses, except the very smallest. Errors ...

...

4.1 Introduction Businesses operate by raising finance from various sources, which is then invested in assets, usually ‘real’ as ...

Chapter 4 • Investment appraisal methods l individual projects frequently involve relatively large and irreversible commit- ment ...

Net present value (most unlikely in real life) this represents a good investment since it will work towards the assumed objectiv ...