includescash,AR,PPE - 2. debt,accruedexpenses 3. thevalueofthebusines...

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WallStreetPrep 1.includescash,A/R,PP&E 2.debt,accruedexpenses 3.thevalueofthebusinessavailabletotheowners(shareholders)afterdebtshave beenpaidoff 4.periodoftime broadsense:showsrevenue-expenses Wall Street Prep.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Wall%20Street%20...

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5.thoseresourcesatagivenpointintime(A=L+SE) 6.representsthesaleofgoodsandservices itisrecordedwhenearned(eventhoughcashmightnothavebeenreceivedatthe timeoftransaction) 7.COGS(directlyassociatewithgoodproduction),SG&A(indirectlyassociatedwith production),interestexpense(expenserelatedtopayingdebtholdersperiodic payments),taxes,depreciationexpense(non-cashexpenseaccountingfortheuseof PP&E,oftenimbeddedwithinCOGSandSG&A)

• Wall Street Prep.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Wall%20Street%20...

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revenue-expenses theprofitabilityavailabletocommonshareholder'safterdebtpaymentshavebeen made(interestexpense) 9.standingshareofcommonstock EPS=(netincome-dividendsonpreferredstock)/weightedaveragesharesout- standing Wall Street Prep.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Wall%20Street%20...

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10.theincomestatementstillrecordsthesale.Asaresult,theincomestatementcapturesall theeconomictransactionsofthebusiness.Thecashflowstatementisneededbecausetheincomestatementuseswhat iscalledaccrualaccounting.Inaccrualaccounting,revenuesarerecordedwhen earnedregardlessofwhencashisreceived(revenueincludessalesusingcashand madeoncreditA/R) Sincewealsowanttohaveaclearunderstandingofthecashpositionofacompany,we needthestatementofcashflowstoreconciletheincomestatementtocashinflows andoutflows."cashpositionofthecompany" cashfromoperatingactivities,cashfrominvestingactivities,andcashfromfinancing Wall Street Prep.pdffile:///C:/Users/HP/Desktop/New%20folder%20(2)/Wall%20Street%20...

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