FIN 305 Lecture Notes - Lecture 4: Gross Margin, Cash Flow Statement, Walmart
24 Dec 2016
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Income statement: balance sheet, cash flow statements. Sales -> compares the sales per years (cid:0) operating expenses -> includes the basic unavoidable costs. If operating expenses increase fast than sales this is a recipe for decline. Operating income -> scalable (cid:0) other expense -> usually one time costs: balance sheet (statement of financial position) Calculates the balance of cash on hand by the end of the period. Divide the balance sheet into half-> lefts side resources and the right is finances. Divide the balance horizontal -> above the middle is short term liability and the bottom half is long term. =the conditions liabilities are less than current assets. Long term assets block -> tangible long lasting things: they are used in the business to generate cash sales, bottom left corner. Breaking down cash flow statement into 4 blocks: operating activities. Hypothesis -> not the most probable -> what if.
