Management and Organizational Studies 2310A/B Chapter Notes - Chapter 3: Reserve Requirement, Inventory Turnover, Valuation Using Multiples

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

Document Summary

The only meaningful benchmark for evaluating business decisions is whether or not they. Chapter 3 working with financial statements create economic value. Cash flow from assets = cash flow to creditors + cash flow to owners. Sources of cash: a firm"s activities that generate cash. Uses of cash: a firm"s activities in which cash is spent. An increase in a left-hand side (asset) account or a decrease in a right-hand side (liability or equity) account is a use of cash. The net addition to cash is just the difference between the sources and uses. Statement of cash flows: a firm"s financial statement that summarizes its sources and uses of cash over a specified period. Common-size statement: a standardized financial statement presenting all items in percentage terms. Statement of financial position is shown as a percentage of assets and income statements as a percentage of sales. relative to a certain base year amount.