Financial Statement Analysis Chapter 4

Financial Statement Analysis K R Subramanyam John J Wild McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. 4-2 Analyzing Investing Activities 4 CHAPTER 4-3 flow rate plus Introduction Classification Current (Short-term) assets Resources or claims to resources that be expected to be sold, collected, or used within one year or the ope deem cycle, whichever is longer. Noncurrent (Longterm) Assets Resources or claims to resources that be expected to bear benefits that extend beyond one year or the operating cycle, whichever is longer. 4-4 Current Asset Introduction Cash, Cash Equivalents and Liquidity Cash Currency, coins and amounts on desexualise in bank accounts, checking accounts, and some savings accounts. 4-5 Current Asset Introduction Cash, Cash Equivalents and Liquidity Cash Equivalents Short-term, highly liquid investments that are: ? Readily convertible to a known cash amount. ? fuddled to maturity date and not sensitive to interest rate changes. 4-6 Current Asset Introduction Analysis of Cash and Cash Equivalents Companies take a chance a reduction in liquidity should the market cheer of short-term investments decline.

Cash and cash equivalents are sometimes essential to be maintained as compensating balances to support existing borrow arrangements or as collateral for indebtedness. 4-7 Current Asset Introduction Receivables Receivables are amounts due from others that arise from the sale of goods or services, or the give of money Accounts receivable refer to oral promises of indebtedness due from customers Notes receivable refer to formal written promises of indebtedness due from others 4-8 Current Asset Introduction Valuation of Receivables Receivables are reported at their realise realizable value â€" total amount of receivables less an accommodation for uncollectible accounts Management estimates the allowance for uncollectibles based on... If you want to start a full essay, order it on our website: Ordercustompaper.com

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