BUS 330 Lecture Notes - Lecture 3: Debt Ratio, Asset Turnover, Financial Ratio
27 Jan 2017
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Bus 330 finance | chapter 3 notes. Sarbanes-oxley act 2002 eliminate disclosure problems est pcaob protect interests of investors. Public corp w/ >mill and >500 stockholders required to provide annual stockholders" report (sums financial activities during year) Firms that beat analyst estimates share prices jump; miss estimates, price declines. Manipulating earnings to mislead investors = earnings management. Financial summary of comp"s operating results in specific period. Summary of firm"s financial posit at given time. Balances assets against financing (debt or equity) Reconciles net income earned during year, dividends paid, with change in retained earnings b/w start and end of year. Summary of firm"s operating, investment, finance cash flows; reconciles w/ changes in cash and marketable securities. Fasb52 us comp have to translate foreign currency into dollars for consolidation w/ parent company"s. Current rate translation method translate foreign currency assets and liabilities into dollars. Retained earnings adjusted to reflect year"s operating profits.
