BreakingintoWallStreet400Guide

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BreakingintoWallStreet400Guide Questions&Answers 1.Answer andcashflowstatement.Theincomestatementgivesthecompaniesrevenueandexpenses,andgoesdownto netincome,thefinallineonthestatement.Thebalancesheetshowscompany'sassets(resources)suchascash,inventory,and PP&E,aswellasitsliabilities,suchasedebtandaccountspayable,andshareholders equity.Assetsmustequalliabilitiesplusshareholdersequity.Thecashflowstatementbeginswithnetincome,adjustsfornon-cashexpensesand workingcapitalchanges,andthenlistscashflowfrominvestingactivitiesand financingactivities.Attheend,youseethecompany'snetchangeincash.

2.Answer Breaking into Wall Street 400 Guide.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Breaking%20into...

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3.Answer Expenses,Debt,ShareholdersEquity 4.Answer ChangesinOperatingAssets&Liabilities;CashFlowFromOperations;Capital Expenditures;CashFlowFromInvesting;Sale/PurchaseofSecurities;Dividends Issued;CashFlowFromFinancing.

5.Answer flowsintoShareholders'EquityontheBalanceSheet,andintothetoplineofthe CashFlowStatement.ChangestoBalanceSheetitemsappearasworkingcapitalchangesontheCashFlow Statement,andinvestingandfinancingactivitiesaffectBalanceSheetitemssuchas PP&E,DebtandShareholders'Equity.TheCashandShareholders'Equityitemsonthe BalanceSheetactas"plugs,"withCashflowinginfromthefinallineontheCashFlow Breaking into Wall Street 400 Guide.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Breaking%20into...

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Statement." 6.andIwantedtoreviewtheoverallhealthofacompany,whichstatementwouldI useandwhy?Answer cashthecompanyisactuallygenerating,independentofallthenon-cashexpensesyou mighthave.Andcashflowis#1thingyoucareaboutinanalyzingfinancialhealthofa business.

7.Answer createtheCFSfrombothofthem(assumingyouhave"before"and"after"versionsof balancesheetcorrespondingtoperiodincomestatementtracks 8.ments?Answer 40%taxrate,netincomewouldgodownby$6becauseofreducedtaxexpense Breaking into Wall Street 400 Guide.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Breaking%20into...

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CFSnetincomeattopgoesdownby$6,but$10depreciationisanon-cashexpense thatgetsaddedback,sooverallcashflowfromoperationsgoesupby$4.Thereareno changeselsewhere,sotheoverallnetchangeincashgoesupby$4.BSPP&Egoesdownby$10onassetssidebecauseofdepreciation,andcashisupby $4fromchangesonCFS Overallassetsisdownby$6.Sincenetincomefellby$6aswell,shareholders' equityisdownby$6andbothsidesofthebalancesheetbalance.*Rememberthatanassetgoingupdecreasesyourcashflow,whereasaliability goingupincreasesyourcashflow 9.Answer affectscashbyreducingtaxes.

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