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38 Cards in this Set
- Front
- Back
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FUNDS FLOW |
It is a process that shows where cash is spent and where it comes from |
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DEPRECIATION |
Asset, but can be deducted from asset |
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ASSET= LIABILITY+S.E. |
Formula for asset |
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Short and long-term debt, accured expenses, payables |
Examples of liabilities |
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Cash, accounts receivable, inventory, fixed assets... |
Examples of assets |
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Capital, revenues, income, operating expenses, cost of goods sold |
Examples of stockholder's equity |
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LIABILITIES |
Payables are... |
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ASSETS |
Receivables are... |
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FUNDS FLOW INCOME STATEMENT CASH FLOW BALANCE SHEET |
How to analyze financial statements? |
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ASSETS LIABILITIES STOCKHOLDERS' EQUITY INCOME EXPENSES |
5 major accounts |
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Current assets |
Type of asset that can be convertible to cash w/in a month to a year Example: Cash, account receivables, inventories |
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Non current assets |
Type of assets that are convertible to cash beyond 1 year |
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Fixed assets |
Tangible assets Has 3 types |
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Land, Building, Machineries and Equipment |
Three types of fixed assets |
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Contra-asset account |
Assets that are deductible Can be credits Examples: allowance for doubtful accounts, Accumulated depreciation |
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OTHER ASSETS |
Intangible assets Examples are operating expenses and goodwill |
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Current Non current Fixed Contra asset account Other |
5 types of assets |
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Current Non-current |
Two types of liabilities |
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CURRENT LIABILITIES |
Types of liabilities that are expected to be settled within one year
Example is accounts payable |
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NON CURRENT LIABILITIES |
Payables which are expected to be settled beyond 1 year Example are notes, loan, and mortgage payables, and unearned revenues |
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STOCKHOLDERS' EQUITY |
Residual interests Examples of capital, withdrawals or drawings, income |
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REVENUES |
Earnings arising from the operations of the business (Still part of SE) Examples include service revenue, interest income, sales, and professional fees |
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Utilities expense Salaries/Wages expense Taxes and licenses expense Cost of sales Supply expense Doubtful accounts expense Depreciation expense |
Examples of expenses (USTCSDD) |
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CURRENT RATIO QUICK RATIO |
2 types of liquidity ratio |
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CR= C.assets/C.liabilities |
Formula for current ratio |
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ACID TEST RATIO |
Other name for quick ratio |
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QR=(cash, marketable securities, accounts receivables)/C.liabilities |
Formula for quick ratio or acid test ratio |
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QUICK ASSETS |
Very liquid current assets |
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Net Asset= tot C.A.+ Net fixed A.+other A. |
Formula for net asset |
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Total debt to O/S.E. ratio Long term debt to O/S.E ratio |
Types of solvency ratios |
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=Total debt/ S.E. |
Formula for total debt to S.E. ratio |
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=long term liabilities/S.E |
Formula for long term debt to S.E. ratio |
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Return on Sales Return on Assets/Investment Return on Equity |
Profitability Ratios (ROs) |
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=Net Profit after Taxes/Sales |
Formula for ROS |
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=NPAT/Assets |
Formula for ROA |
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=NPAT/ O.E. |
Formula for ROE |
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(ROA+Total Assets)/SE Ratio |
ROE is the same as... |
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Write down the income statement |
