Chapter 3 Contents 3.1 Functions of 3.6 Analysis Using Financial Statements Financial Ratios 3.2 Review of Financial 3.7 The Financial Statement Planning Process 3.3 Market values v. 3.8 Constructing a Book Values Financial Planning 3.4 Accounting v. Model Economic Measures of 3.9 Growth the Need Income for External Financing 3.5 Return on 3.10 Working Capital Shareholders v.Return Mgmt. on Book Equity 3.11 Liquidity Cash Mgmt. .THE COURSE OF FINANCE 2017 SPRING SJTUChapter 3 Contents  3.1 Functions of Financial Statements  3.2 Review of Financial Statement  3.3 Market values v. Book Values  3.4 Accounting v. Economic Measures of Income  3.5 Return on Shareholders v. Return on Book Equity  3.6 Analysis Using Financial Ratios  3.7 The Financial Planning Process  3.8 Constructing a Financial Planning Model  3.9 Growth & the Need for External Financing  3.10 Working Capital Mgmt.  3.11 Liquidity & Cash Mgmt. •THE COURSE OF FINANCE 2017 SPRING SJTU •2