CP

364 CHAPTER 9 Financial Statements, Cash Flow, and Taxes Of course, it is generally not possible to finance exclusively with deb ...

The Federal Income Tax System 365 accumulationprovision that states that earnings accumulated by a corporation are subject to pe ...

366 CHAPTER 9 Financial Statements, Cash Flow, and Taxes S corporations.(“Regular” corporations are called C corporations.) If a ...

Summary 367
Operating current liabilitiesare the current liabilities that occur as a natural consequence of operations, such a ...

368 CHAPTER 9 Financial Statements, Cash Flow, and Taxes
S corporations are small businesses that have the limited-liability b ...

Problems 369 the business. Assume that as a married woman with one child, she files a joint return. She has in- come tax exempti ...

370 CHAPTER 9 Financial Statements, Cash Flow, and Taxes a.What is the net operating profit after taxes (NOPAT) for 2002? b.What ...

Spreadsheet Problems 371 married and has two children. Her family’s only income ,an annual salary of $52 ,000 ,is from operating ...

372 CHAPTER 9 Financial Statements, Cash Flow, and Taxes a.The company’s sales for 2002 were $455,150,000, and EBITDA was 15 per ...

Mini Case 373 INCOME STATEMENTS 200 12002 Sales $3,432,000 $5,834,400 Cost of goods sold 2,864,000 4,980,000 Other expenses 340, ...

374 CHAPTER 9 Financial Statements, Cash Flow, and Taxes Summary Net change in cash ($ 1,718) Cash at beginning of year 9,000 Ca ...

375 Analysis of Financial Statements 10 OnMay19,1999,DellComputerCorp.announcedthatitsfirstquarterearningswere 42percenthigherth ...

376 CHAPTER 10 Analysis of Financial Statements Theprimarygoaloffinancialmanagersistomaximizethestockprice,notaccounting measure ...

Liquidity Ratios 377 Ability to Meet Short-Term Obligations: The Current Ratio The current ratiois calculated by dividing curren ...

378 CHAPTER 10 Analysis of Financial Statements Quick, or Acid Test, Ratio The quick,or acid test, ratiois calculated by deducti ...

Asset Management Ratios 379 his “turnover” was the number of trips he took each year. Annual sales divided by in- ventory equale ...

380 CHAPTER 10 Analysis of Financial Statements The DSO can also be evaluated by comparison with the terms on which the firm sel ...

Debt Management Ratios 381 MicroDrive’s ratio is somewhat below the industry average, indicating that the com- pany is not gener ...

and some provide the ratio of debt to equity, so be sure to check the source’s definition.^6 Ability to Pay Interest: Times Inte ...

MicroDrive had $283.8 million of operating income (EBIT), presumably all cash. Noncash charges of $100 million for depreciation ...