Principles of Managerial Finance

80 PART 1 Introduction to Managerial Finance LG1 LG1 LG1 2–6 Impact of net income on a firm’s balance sheet Conrad Air, Inc., re ...

CHAPTER 2 Financial Statements and Analysis 81 LG1 LG2 LG3 LG4 LG5 a. Prepare a statement of retained earnings for the year ende ...

82 PART 1 Introduction to Managerial Finance LG3 LG3 a. What problems might Robert encounter in comparing these companies to one ...

CHAPTER 2 Financial Statements and Analysis 83 LG3 LG3 LG4 2–13 Accounts receivable management An evaluation of the books of Bla ...

84 PART 1 Introduction to Managerial Finance Note: Industry averages appear at the top of the following page. Creek Enterprises ...

CHAPTER 2 Financial Statements and Analysis 85 LG5 LG4 LG5 2–16 Common-size statement analysis A common-size income statement fo ...

86 PART 1 Introduction to Managerial Finance LG6 LG6 a. Calculate the following debt and coverage ratios for the two companies. ...

CHAPTER 2 Financial Statements and Analysis 87 Note: Industry averages appear at the top of the following page. Fox Manufacturin ...

88 PART 1 Introduction to Managerial Finance LG6 2–20 Financial statement analysis The financial statements of Zach Industries f ...

CHAPTER 2 Financial Statements and Analysis 89 LG6 a. Use the preceding financial statements to complete the following table. As ...

90 PART 1 Introduction to Managerial Finance Historical and Industry Average Ratios for Sterling Company Ratio Actual 2001 Actua ...

CHAPTER 2 Financial Statements and Analysis 91 LG6 LG6 2–22 Dupont system of analysis Use the following ratio information for Jo ...

92 PART 1 Introduction to Managerial Finance a. In order to focus on the degree of change, calculate the year-to-year propor- ti ...

CHAPTER 2 Financial Statements and Analysis 93 Note: Industry historical ratios appear at the top of the following page. Martin ...

94 PART 1 Introduction to Managerial Finance WW W Required a. Calculate the firm’s 2003 financial ratios, and then fill in the p ...

CHAPTER 2 Financial Statements and Analysis 95 Remember to check the book’s Web site at http://www.aw.com/gitman for additional ...

LEARNING GOALS 96 CASH FLOW AND FINANCIAL PLANNING CHAPTER Across the Disciplines WHY THIS CHAPTER MATTERS TO YOU Accounting:You ...

97 I t’s tempting for companies to focus on short-term profitability, especially when Wall Street is watching earnings reports, ...

98 PART 1 Introduction to Managerial Finance Land values are notdepreciable. Therefore, to determine the depreciable value of r ...

CHAPTER 3 Cash Flow and Financial Planning 99 recovery period The appropriate depreciable life of a particular asset as determin ...