ARBUS102 Lecture Notes - Lecture 6: Accrued Interest, Current Liability, Income Statement
3 Apr 2016
School
Department
Course
Professor
Document Summary
Operaing aciviies cash from main business (received from customers paid to suppliers etc. ) Invesing aciviies used cash _______ cash relaing to property, plant, & equipment, l-t. Financing aciviies received cash or used cash relaing to l-t _____, equity. Shows efect of managing the working capital (current assets, current liabiliies) Cash = l + se - non-cash assets. = net income eliminate all non-cash items or the income statement. + - s in current assets & current liabiliies. Preferred shares: rank ahead of c/s in liquidaion (bankruptcy) Pay dividends (investors want regular low of income) Dividends can be cumulaive or non-cumulaive dictates what happens when company misses a dividend (board of directors decides when dividends can be paid) Cumulaive o/s dividends any dividends in ____ (i. e. dividends was not paid when scheduled) must be paid irst non cumulaive p/s dividends missed dividends are never paid.
