BUS 082 Chapter Notes - Chapter 8: Financial Statement Analysis, Cash Flow Statement, Cash Flow

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

Cash flow movements of cash, liquidity and solvency of a business. All payments of a particular type are added together. Cash balance at end of period should match balance sheet. Look at accounts receivable example + operating. Establishing business operating expenses may be large (net cash used) Need strong internal control over cash and management over cash know what spending cash on and receiving cash for. Process of reviewing and analysing a company"s financial statements to make better economic decisions. Financial statements are primarily used by management, banks, investors, creditors and government regulatory agencies. Amount change and percentage change between years. Calculated by selecting a base year whose amounts are set to 100% Amounts of other years are expressed as a percentage of the base amount. Trend % = any year $ / base year $ Compares each item in a financial statement to a base number set to 100%