Foundations of Finance
Financial Statement Analysis
Working Capital Management
Business Valuation
Capital Financing and Risk Analysis
100
Managers, employees, suppliers, creditors, customers, and the government
Who are Shareholders?
100
Cash, Inventory, Accounts Receivable
What are Current Assets?
100
Current Assets minus Current Liabilities equals
What is the Working Capital Ratio?
100
The estimated value of all assets and liabilities of an acquired company used to consolidate the financial statements of both companies
What is Fair Value?
100
The mix of financial securities (debt, common and preferred stock) used to finance its activities
What is Capital Structure?
200
Sole proprietorships, Partnerships, Corporations
What are Forms of Business Organizations?
200
Balance Sheet, Statement of Financial Condition Income Statement, Statement of Operations, Profit and Loss Statement
What are Financial Statements?
200
The ability of a company to convert assets—real or financial—into cash quickly without suffering a financial loss
What is Liquidity?
200
The difference between a dollar in hand today and a dollar promised in the future
What is the Time Value of Money?
200
The amount of time it takes for the sum of the net cash flows from a project to equal the project’s initial investment
What is the Payback Period?
300
Costs that arise from incurring and preventing conflicts of interest between a firm’s owners and its managers
What are Agency Costs?
300
Accounting rules and standards that public companies must adhere to when they prepare financial statements and reports
What are Generally Accepted Accounting Principles?
300
Begins when the firm uses its cash to purchase raw materials and ends when the firm collects cash payments on its credit sales
What is the Operating Cycle?
300
Cost of duplicating the assets of the business in their present form as of the valuation date
What is Replacement Cost?
300
Analytical method concerned with how the results from a financial analysis will change under alternative scenarios
What is Scenario Analysis?
400
Society’s standards for acceptable behavior applied to business and financial markets
What are Business Ethics?
400
Summarizes the overall performance of a firm for the most recent fiscal year and Provides information on the company, its products, its activities, and its future and Includes audited financial statements, five-year summary of financial data
What is the Annual Report?
400
Represents the length of time between the cash outflow for materials and the cash inflow from sales
What is the Cash Conversion Cycle?
400
The process of determining the present value of a payment or a stream of payments that is to be received in the future.
What is Discounting?
400
The study of the underlying uncertainty of a given course of action
What is Risk Analysis?
500
Legislation passed by the U.S. Congress to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures.
What is the Sarbanes-Oxley Act?
500
Shows cash inflows and outflows for operating, investing and financing activities.
What is the Statement of Cash Flows?
500
In this system the exact day-by-day, or even hour-by-hour raw material needs are delivered by the suppliers
What is Just-in-Time Inventory Management?
500
Compares the present value of expected benefits and cash flows from a project to the present value of the expected costs; if the benefits are larger, the project is feasible
What is Net Present Value?
500
The study of how money is managed and the actual process of acquiring needed funds
What is Finance?
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