Management and Organizational Studies 2310A/B Lecture Notes - Lecture 3: General Idea, Shares Outstanding, Balance Sheet

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2310A/B
• Professor: Jun Wang

Document Summary

3. 1 cash flow and financial statements: a closer look. Sources and uses of cash: sources. Cash inflow occurs when we sell something. Cash outflow occurs when we buy something. Statement that summarizes the sources and uses of cash. Ratios are relationships determined from a firm"s financial. Ratios also allow for better comparison through time or between. To address a firm"s ability to pay its bills over the short run without undue stress. Current ratio = ca / cl : 1,801,690 / 1,780,785 = 1. 01 times. Quick ratio = (ca inventory) / cl * Cash ratio = cash / cl : (1,801,690 388,947) / 1,780,785 = . 793 times, 3,171 / 1,780,785 = . 002 times, cash means cash + cash equivalents. How to use asset to pay for long-term debt. To address a firm"s long-run ability to meet its obligations or, more generally, its financial leverage. Total debt ratio = (ta te) / ta*