BUSS1030 Lecture Notes - Lecture 8: Finance Lease, Free Cash Flow, Corporate Finance

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: All

Document Summary

Buss1030 lecture 8 measuring & reporting cash flows. Important for a business to settle claims, buy new asset, meet expenses, receive returns. Businesses fail is often a result of their inability to find sufficient cash to settle external claims. Analysts & others watch carefully in trying to assess the ability of business to survive & to take advantage of commercial opportunities as they arise (e. g. ability to borrow to a point that makes more profits & repay) Statement of financial position (balance sheet) based on accrual transactions. Statement of comprehensive income (income statement/profit & loss) based on accrual transactions related to income earned less expenses incurred. Based on cash transactions (cash inflow & outflow) - ignore non-cash transaction. For a period incorporates all account types. Statement of changes in equity (*don"t ha(cid:448)e to kno(cid:449) ho(cid:449) to do) identifies all changes in e(cid:395)uity (cid:396)elated to (cid:272)o(cid:373)p(cid:396)ehe(cid:374)si(cid:448)e i(cid:374)(cid:272)o(cid:373)e, o(cid:449)(cid:374)e(cid:396)"s (cid:272)o(cid:374)t(cid:396)i(cid:271)utio(cid:374)s & (cid:449)ithd(cid:396)a(cid:449)als, (cid:272)ha(cid:374)ges (cid:374)ot processed through income statement.