Index 653Estimates, changes in, 53–54
Executive compensation, and taxes, 325–335
Exotics, 434
Extraordinary items, 47–51
Fairchild Corporation, 43, 62, 69, 70
Family limited partnership, 344–345. See also
Limited partnership
Fashionhouse Furniture, 353–357, 361, 375, 401,
404, 407, 413, 415
Federal Express, 360, 361
File server, 164
Finance committee, 529–532
Financial budget, 187–189. See also Budget(s)/
budgeting
Financial Management Association, 168, 172
Financial plan (in business plan), 286 –288
Financial ratios, 21–23, 28–29, 30–31, 601– 603
activity ratios, 601
analysis, 601– 603
combining, 30–31
coverage ratios, 601
industry composites comparison, 29
investment profitability, 25–28
leverage ratios, 601
liquidity ratios, 601
long-term solvency analysis, 21–23, 28
profitability ratios, 28, 603
sales profitability, 23–25, 28
short-term liquidity analysis, 28
Financial statements, 3–34, 286 –288, 409– 410,
524, 610– 611
analyzing, 16 –28
assets/liabilities, current, 17–18
audit, 12–13, 524
balance sheet, 4, 6, 7, 8, 10, 15, 17, 25,
599– 601, 613
in business plan, 286 –288
case study, 4–13, 17
cash f low statement, 8–10, 11, 15, 54–58, 77,
190–191
compilation, 13
of foreign subsidiaries, 356, 375–386
format, 14–16
income statement, 5, 10, 11, 14, 23, 24, 25,
39–54, 56, 90, 186 –187, 410, 601, 602
inf lation effects and adjustment of, 409– 410
Internet links, 33–34
points to remember about, 10–11
projected, 610– 611
review, 12, 13
service levels (CPA) relating to, 12–13
uses of, 13–14
valuation and analysis of, 599– 603
Financing:
sources, 460
timing/availability (critical risks section of
business plan), 285
Firewall, 553
First Aviation Services, 61– 62
Forecasts/projections:
budgets and, 191–193
cash f low, 292–299
sales/marketing, 276 –277
Foreign company, predatory pricing by
(dumping), 123
Foreign exchange. See Currency
Foreign subsidiaries:
evaluation of performance of, 356, 401– 407
impact of exchange rate movements on
performance evaluation, 401– 404
transfer pricing, 404– 407
translation of financial statements of, 356,
375–386
U.S. government restrictions on business
practices, 356, 413– 415
For ward contracts, 361, 434– 436, 437– 440
Franklin Planner, 588
Freeport-McMoRan, 46
Futures, 361, 434, 436 – 440Galey & Lord, 384, 385
General Electric, 555
General partnership, 226 –227. See also
Partnership
General Utilities doctrine, 351
Gerber Scientific, 61
Gift tax, 317–318
Glaxo Wellcome PLC, 576
Global finance, 353– 422
accounting policy differences, 356, 393– 400
case illustration (Fashionhouse Furniture),
353–357, 361, 375, 401, 404, 407, 413,
415
companies referenced, 417– 419
currency risk management, foreign
subsidiaries, 356, 386 –389
financial reporting of foreign-currency
denominated transactions, 356 –358
hedge accounting, 389–393
inf lation effects, 356, 407– 413
performance evaluation, foreign
subsidiaries/management, 356, 401– 407
risk management alternatives for foreign-
currency denominated transactions, 356,
358–375
translation of financial statements of foreign
subsidiaries, 356, 375–386
U.S. government restrictions, 356, 413– 415
Goal orientation (budgets), 176 –177
Goodwill, 399– 400, 583–584
Goodyear Tire and Rubber Company, 38, 63
Government accounting, 217–218
Gover nment restr ictions on business practices
associated with foreign subsidiaries and
governments, 356, 413– 415