MGMT 1000 Chapter Notes - Chapter 11: Cash Flow Statement, Retained Earnings

• School: University of Guelph
• Department: Management
• Course: MGMT 1000
• Professor: Kathleen Rodenburg

Document Summary

Current assets: cash, bank, and other assets that can be converted to cash within a year. Fixed assets: land, buildings, and equipment have long-term use/value. Intangible assets: cost of obtaining rights such as patents and trademarks. Retained earnings: net profits dividend payments to shareholders. Short-term solvency ratios: measu(cid:396)e a (cid:272)o(cid:373)pa(cid:374)y"s li(cid:395)uidity a(cid:374)d its a(cid:271)ility to pay i(cid:373)(cid:373)ediate de(cid:271)ts. Long-term solvency ratios: currents assets current liabilities, debt-to-equity ratio: debt o(cid:449)(cid:374)e(cid:396)"s e(cid:395)uity, net income total o(cid:449)(cid:374)e(cid:396)"s e(cid:395)uity, net income sales revenue. If it"s highe(cid:396) tha(cid:374) last yea(cid:396), the(cid:374) i(cid:374)(cid:448)esto(cid:396)s (cid:449)ill (cid:271)e happy. If it"s lo(cid:449)e(cid:396) tha(cid:374) the i(cid:374)dust(cid:396)y (cid:374)o(cid:396)(cid:373) the(cid:374) i(cid:374)(cid:448)esto(cid:396)s (cid:449)ill (cid:271)e (cid:272)o(cid:374)(cid:272)e(cid:396)(cid:374)ed. Earnings per share: net income number of common shares outstanding. Inventory turnover: calculates average number of times that inventory is sold and restocked during the year (cost of goods sold average inventory = cogs (beginning inventory + ending.