1
Cash flow statement
It is a statement that shows all the outflows incurred by a company in cash and all the inflows of cash. This statement is divided into three sections or it shows
2
To calculate:Amount of free cash flow.
3
To calculate:Current ratio and quick (acid-test) ratio for the company.
4
Asset management
Asset management means proper management of investments made by a company. Asset management is done to maximize the
To calculate:Average collection and average sales period in order to assist the asset management of the company.
5
Debt management Debt management means proper management of the amount that a company owes to others. It specifies the total amount that a company owes to its creditors.
To calculate:Debt to equity ratio and equity multiplier in order to assist the debt management of the company.
6
Profitability ratios These ratios calculate the ability of a company to make a profit related to its total assets, liabilities, expenses and sales made.
To calculate:Net profit margin and return on equity of the company in order to asses its profitability.
7
Assessment of market performance This requires the calculation of overall performance of the company in the market, earnings earned by the company, amount of dividend paid, etc.
To calculate:Earning per share and dividend payout ratio of the company in order to assess its market performance.
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Chapter IE Solutions
INTRO MGRL ACCT LL W CONNECT
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