Escrito por estudiantes que aprobaron Inmediatamente disponible después del pago Leer en línea o como PDF ¿Documento equivocado? Cámbialo gratis 4,6 TrustPilot
logo-home
Examen

Breaking Into Wall Street Basic Questions | 100% Correct Answers | Verified | Latest 2024 Version

Puntuación
-
Vendido
-
Páginas
42
Grado
A+
Subido en
14-05-2024
Escrito en
2023/2024

Breaking Into Wall Street Basic Questions | 100% Correct Answers | Verified | Latest 2024 Version Walk me through the 3 financial statements. - "The 3 major financial statements are the Income Statement, Balance Sheet and Cash Flow Statement. The Income Statement gives the company's revenue and expenses, and goes down to Net Income, the final line on the statement. The Balance Sheet shows the company's Assets - its resources - such as Cash, Inventory and PP&E, as well as its Liabilities - such as Debt and Accounts Payable - and Shareholders' Equity. Assets must equal Liabilities plus Shareholders' Equity. The Cash Flow Statement begins with Net Income, adjusts for non-cash expenses and working capital changes, and then lists cash flow from investing and financing activities; at the end, you see the company's net change in cash." How do the 3 statements link together? - "To tie the statements together, Net Income from the Income Statement flows into Shareholders' Equity on the Balance Sheet, and into the top line of the Cash Flow Statement. Changes to Balance Sheet items appear as working capital changes on the Cash Flow Statement, and investing and financing activities affect Balance Sheet items such as PP&E, Debt and Shareholders' Equity. The Cash and Shareholders' Equity items on the Balance Sheet act as "plugs," with Cash flowing in from the final line on the Cash Flow Statement." If I were stranded on a desert island, only had 1 statement and I wanted to review the overall health of a company - which statement would I use and why? - You would use the Cash Flow Statement because it gives a true picture of how much cash the company is actually generating, independent of all the non- cash expenses you might have. And that's the #1 thing you care about when analyzing the overall financial health of any business - its cash flow. Let's say I could only look at 2 statements to assess a company's prospects - which 2 would I use and why? - You would pick the Income Statement and Balance Sheet, because you can create the Cash Flow Statement from both of those (assuming, of course that you have "before" and "after" versions of the Balance Sheet that correspond to the same period the Income Statement is tracking). Walk me through how Depreciation going up by $10 would affect the statements. - Income Statement: Operating Income would decline by $10 and assuming a 40% tax rate, Net Income would go down by $6. Cash Flow Statement: The Net Income at the top goes down by $6, but the $10 Depreciation is a non- cash expense that gets added back, so overall Cash Flow from Operations goes up by $4. There are no changes elsewhere, so the overall Net Change in Cash goes up by $4. Balance Sheet: Plants, Property & Equipment goes down by $10 on the Assets side because of the Depreciation, and Cash is up by $4 from the changes on the Cash Flow Statement. Overall, Assets is down by $6. Since Net Income fell by $6 as well, Shareholders' Equity on the Liabilities & Shareholders' Equity side is down by $6 and both sides of the Balance Sheet balance. If Depreciation is a non-cash expense, why does it affect the cash balance? - Although Depreciation is a non-cash expense, it is tax-deductible. Since taxes are a cash expense, Depreciation affects cash by reducing the amount of taxes you pay. What happens when Accrued Compensation goes up by $10? - Assuming that's the case, Operating Expenses on the Income Statement go up by $10, Pre-Tax Income falls by $10, and Net Income falls by $6 (assuming a 40% tax rate). On the Cash Flow Statement, Net Income is down by $6, and Accrued Compensation will increase Cash Flow by $10, so overall Cash Flow from Operations is up by $4 and the Net Change in Cash at the bottom is up by $4. On the Balance Sheet, Cash is up by $4 as a result, so Assets are up by $4. On the Liabilities & Equity side, Accrued Compensation is a liability so Liabilities are up by $10 and Retained Earnings are down by $6 due to the Net Income, so both sides balance.

Mostrar más Leer menos
Institución
Breaking Into Wall Street Basic
Grado
Breaking Into Wall Street Basic











Ups! No podemos cargar tu documento ahora. Inténtalo de nuevo o contacta con soporte.

Escuela, estudio y materia

Institución
Breaking Into Wall Street Basic
Grado
Breaking Into Wall Street Basic

Información del documento

Subido en
14 de mayo de 2024
Número de páginas
42
Escrito en
2023/2024
Tipo
Examen
Contiene
Preguntas y respuestas

Temas

$11.58
Accede al documento completo:

¿Documento equivocado? Cámbialo gratis Dentro de los 14 días posteriores a la compra y antes de descargarlo, puedes elegir otro documento. Puedes gastar el importe de nuevo.
Escrito por estudiantes que aprobaron
Inmediatamente disponible después del pago
Leer en línea o como PDF


Documento también disponible en un lote

Thumbnail
Package deal
Breaking Into Wall Street Bundled Exams with Verified Solutions
-
3 2024
$ 34.48 Más información

Conoce al vendedor

Seller avatar
Los indicadores de reputación están sujetos a la cantidad de artículos vendidos por una tarifa y las reseñas que ha recibido por esos documentos. Hay tres niveles: Bronce, Plata y Oro. Cuanto mayor reputación, más podrás confiar en la calidad del trabajo del vendedor.
SterlingScores Western Governers University
Ver perfil
Seguir Necesitas iniciar sesión para seguir a otros usuarios o asignaturas
Vendido
475
Miembro desde
1 año
Número de seguidores
41
Documentos
12820
Última venta
11 horas hace
Boost Your Brilliance: Document Spot

Welcome to my shop! My shop is your one-stop destination for unlocking your full potential. Inside, you\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'ll find a treasure collection of resources prepared to help you reach new heights. Whether you\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\'re a student, professional, or lifelong learner, my collection of documents is designed to empower you on your academic journey. Each document is a key to unlocking your capabilities and achieving your goals. Step into my shop today and embark on the path to maximizing your potential!

Lee mas Leer menos
4.2

122 reseñas

5
79
4
13
3
13
2
5
1
12

Documentos populares

Recientemente visto por ti

Por qué los estudiantes eligen Stuvia

Creado por compañeros estudiantes, verificado por reseñas

Calidad en la que puedes confiar: escrito por estudiantes que aprobaron y evaluado por otros que han usado estos resúmenes.

¿No estás satisfecho? Elige otro documento

¡No te preocupes! Puedes elegir directamente otro documento que se ajuste mejor a lo que buscas.

Paga como quieras, empieza a estudiar al instante

Sin suscripción, sin compromisos. Paga como estés acostumbrado con tarjeta de crédito y descarga tu documento PDF inmediatamente.

Student with book image

“Comprado, descargado y aprobado. Así de fácil puede ser.”

Alisha Student

Preguntas frecuentes