ECON 106F Lecture Notes - Lecture 2: Inventory Turnover, Retained Earnings, Mci Inc.
Document Summary
Analysis: learning objectives, list the 4 major financial statements required by the sec for publicly traded firms o o. Explain why each of these financial statements is valuable: discuss the difference between o o o. Explain why the two numbers are almost never the same: compute the following measures, and describe their usefulness in assessing firm performance: o o o o o o o. Cash flow, as reported on the statement of cash flows. The firms" disclosure of financial info o. Very important for a business- all info is contained within these reports. Must also send an annual report with financial statements to shareholders. These rules are widespread but not used everywhere in the world. A neutral third party who checks a firm"s financial statements. Intended to remove a conflict of interest (coi) from the process and create confidence in the financial data.
