FIN 305 Lecture Notes - Lecture 6: Deferral, Financial Statement, Geostationary Operational Environmental Satellite
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Many years to recover costs for these. Productive resources: assets that help generate revenue, income, cash flow. Look at asset mix to gain insight into biz model--e. g. if you observe lt% > ca%, see that this biz requires lots of capital investment, but also need to remember to compare against similar companies. No land , which means they probably rent their facilities. These will not be converted to cash, instead be used for generating goods to sell to make cashflow. Important to investigate these investments in two ways: economic gain (roi) Profit generated vs the cost of the asset: productivity. Quantity and rate of product output vs investment. Review of assets (willing to bet these were already covered in 14 a and b) All assets represent potential future economic benefits. Asset if: converted to cash, sold for cash, saves spending cash, produces something that can be sold for cash.