Understanding Financial Statements: Key Concepts and Analysis

School: Michigan State University - Course: FINANCE 310 - Subject: Accounting

Lesson2 : MainFinancial Statements :firms assets = liabilities & aauireassetsborrowciiab> issue SHAVE hold  equity equity measures sucess ( profits) MOST IMPORTANTSECTION explains a sectionof balance sheet Incomestatement : depreciation = tangible assets ciriarreogearmdsohiinery) amortization paidionoldersPaid-09W = intangible ":P "" C- depreciation &amortization ) aka gov/otherholderswhen the firmwants - to grow , part of thenet income increase ] shareholdervalue
 
Statementofstockholder Equity : f companymightbuy backsharesBUT inorder for shares to increase : MUSTBEOVERALLCREATE POSBALANCE ' must issue newsharesthat year con average ) statement ofcash flows : listed separateoncash flows intra sing OR decreasing cashholdings cashholdings
 
Statement ofcash flow : BOTTOM OF INCOME STNTEMEN- havent paid the cost recognized ,suppliers already on income gavethe content statement µ ! ! ""]ggan . isit asource SOURCE =p ! oruseof funds? USE =sea asset: account receivable In thecostof machinery ( waspaid inpast pay Éackdepriciation ) Net income= cash inflow revenue - _ cashinflow&cost = cashoutflow ,,,,,,,,,,,,m,, ,,,,,,,,w,,,,,,,,, , , , , , ,µ , ,w) madethesale but havent collected the money useoffundsbecause revenuehasnt been collected

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