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12 Cards in this Set

  • Front
  • Back
balance sheet
summarizes a firm's assets, liabilities, and stockholder's equity on any given date (snapshot)
income statement
reveals a firms revenues, expenses, taxes, and profits during a particular period of time
current assets
assets that can be converted into cash & available to the firm within one year
current liabilities
liabilities or claims which will require the use of cash to pay off or liquidate within one year
equity/ net worth
common stock, paid in capital, and retained earnings
liquidity ratio
examines the adequacy of funds, solvency of the company, and the ability to pay its short-term bills
leverage ratios
indicate the company's capacity to meet its long-term obligations and interest charges
activity ratios
measure how effectively the company is using its resources
profitability ratios
indicate the return on sales and investments
common stock ratios
measure market performance
net working capital (NWC)
represents assets which will convert into cash in less than a year less claims that will require liquidation with cash within a year
limitations of ratio analysis
distortion of comparative data, varied product lines, differences in accounting methods, window dressings