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FINANCIAL REPORTING
Week 3
Financial Statement Analysis
(Part 1)
Copyright © 2017 McGraw-Hill Education (Australia) Pty Ltd
PPTs to accompany Fundamentals of Corporate Finance 7e by Ross et al. 2-1
CHAPTER THREE
Working with financial
statements
continued
Uses of cash
Increase in receivables $23
Increase in inventory 29
Decrease in notes payable 7
Decrease in non-current debt 74
Non-current asset acquisitions 149
Total uses $282
Net addition to cash $ 64
continued
continued
Current assets
Cash $90 $100
Accounts receivable 520 620
Inventory 640 770
Total $1 250 $1 490
Non-current assets
Net plant and equipment 1 970 2 200
continued
Current assets
Current ratio
Current liabilities
365 days
Days' sales in inventory
Inventory turnover
Sales
Receivable s turnover
Accounts receivable
continued
Sales
Fixed asset turnover
Non - current assets
Sales
Total asset turnover
Total assets
Net profit
Return on assets (ROA) 100%
Total assets
EBIT
Return on investment 100%
Total assets
Net profit
Return on equity (ROE) 100%
Total equity
continued
continued
continued