Sources & Uses of Cash
Capital
Taxes
Big Four Statements
Interpreting Financial Statements
100
Paying off a liability.
What is a use?
100
Current Assets minus Current Liabilities
What is net working capital?
100
Tax Liability / Taxable Income
What is the average tax rate?
100
Shows profit and loss (revenue and expenses).
What is the income statement?
100
Both assets and liabilities are listed on a balance sheet in this order.
What is liquidity?
200
Taking out a loan.
What is a source?
200
How your debt and equity finance your company (e.g. 20% debt and 80% equity).
What is the capital structure?
200
The taxes owed on the next dollar of income earned?
What is the marginal tax rate?
200
The three main section of the balance sheet.
What are assets, liability (or debt), and equity (or owner's equity or capital)?
200
Controlling a firm's earnings.
What is earnings management?
300
Accounts payable is up in the ending balance over the beginning balance.
What is a source?
300
Owners equity includes paid-in-capital, capital stock and this account.
What is retained earnings?
300
The payment to shareholders that is not tax deductible.
What are dividends?
300
The three sections of the Statement of Cash Flow
What are Operating, Investing, and Financing?
300
Financial standards used in the U.S.
What is GAAP?
400

Accounts receivable is higher at the end than at the beginning.

What is a use?

400
The hybrid type of security in the capital account.
What is preferred stock?
400
Taxes that are postponed by a company.
What are deferred taxes?
400
The words behind the acronym EBITDA.
What are Earnings Before Interest, Taxes, Depreciation, and Amortization?
400
The amount of after-tax cash flow less needed reinvestment in the firm.
What is free-cash flow?
500

Accruals are lower at the end than at the beginning of the period.

What is a use?

500
The accounting equation
What is Assets = Liabilities + Owner's Equity
500
The type of tax structure in the U.S.
What is progressive?
500
How retained earnings may be less at the end of the year compared to the beginning of the year when you have a net profit.
What is when you pay out more in dividends than the profit?
500
The initials NOPAT stand for this.
What is net operating profit after taxes?
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