Adventis stuvia - Study guides, Class notes & Summaries

Income Statement - Answer presents the results of operations over period of time to show whether the company made or lost money during the period reported Revenue (Sales) - Answer the amount charged for the delivery of goods or services Cost of Sales (COGS) - Answer the direct cost of producing revenue (raw materials, direct wages, etc.) Gross Profit - Answer Revenue - COGS, indicates how efficiently labor and supplies are used in the production process Operating Expenses - Answer al...

Two main types of valuation methods? - Answer Relative and intrinsic refers to methods that compare the price of a company to the market value of similar asset - Answer Relative Valuation refers to the value of a company through fundamental analysis around its ability to generate cash flow - Answer Intrinsic Valuation In an M&A context, Enterprise Value is analogous to? - Answer Transaction Value In an M&A context, Equity Value is analogous to? - Answer Purchase Price Two primary ...

what do financial statements communicate? - Answer fin condition, results of operation, and other activities of an organization how does the board of directors use financial statments? - Answer hold management accountable and make board level decisions about corporte strategy how does company management use financial statments? - Answer measures performance and makes strategic, operational and financial decisions how do creditors use fin statements? - Answer measure creditworthiness, li...

Two types of valuation - Answer Relative and Intrinsic Relative Valuation - Answer Refers to methods that compare the price of a company to the market value of similar assets Two Types of Relative Valuation - Answer Comparable company analysis and Acquisition comparable analysis Comparable Company Analysis - Answer Used to determine the value of a company by applying relevant multiples of peers to company's metrics. -Enterprise Value/EBITDA -Enterprise Value/Revenue -Equity Value/Ea...

capital expenditures - Answer Which of the following does not fall into operating activities? Asset increasing - Answer Which does not represent a source (inflow) of cash? Accounts Receivable - Answer Which of the following balance sheet items are included in working capital? short-term debt - Answer Which of the following balance sheet items are not included in working capital? It is a proxy for total cash flow of a company - Answer Which of the following statements about EBITDA is ...