Lesson notes Lesson 9: Financial Statements Learning objectives 1. Learn what financial statements are and how these accounting tools work in their future profession 2. Be acquainted with the functions and formats of these financial statements 3. Learn some details relating to preparation of these financial statements

Organizing a Business The role of The Financial Manager Financial Markets Who Is The Financial Manager Corporate Goals& Incentives Value Maximization Irwvin/McGraw-Hill The McGraw-Hill Companies

– Ch.1 The Role and Objective of Financial Management – Ch.2 The Domestic and International Financial Marketplace

the functions of financial system the participants in financial system the financial intermediaries and their respective functions

Chapter 1 Introduction to Financial Management Chapter 2 Financial Statements, Taxes, and Cash Flow Chapter 3 Working With Financial Statements Chapter 5 Introduction to Valuation: The Time Value of Money Chapter 6 Discounted Cash Flow Valuation Chapter 7 Interest Rates and Bond Valuation Chapter 8 Equity Markets and Stock Valuation Chapter 9 Net Present Value and Other Investment Criteria Chapter 10,11 Making Capital Investment Decisions Chapter 12 Some Lessons from Capital Market History Chapter 13 Risk and Return Chapter 15 Cost of Capital Chapter 17 Leverage and Capital Structure Chapter 18 Dividends and Dividend Policy Chapter 19 Short-Term Financial Planning Chapter 20, 21 Working Capital Management

❖ Review of Financial Statements ❖ Market Values v. Book Values ❖ Accounting v. Economic Measures of Income ❖ Return on Shareholders v. Return on Equity ❖ Analysis Using Financial Ratios ❖ The Relation Among ❖ Limitations of Ratio Analysis ❖ Purpose and Process of Financial Planning ❖ Managing Working Capital

Organizing Business The Role of The Financial Manager Financial Markets Who Is The Financial Manager Corporate Goals Incentives Value Maximization

The financial privacy law passed by Congress in 1999 has been the target of scathing criticism. On one side, banks and other financial institutions have complained about the high costs of the billions of notices sent to consumers, apparently to widespread consumer indifference. On the other side, privacy

The Business, Tax, and Financial Environments The Business Environment The Tax Environment The Financial Environment

10.1 The Regulation of Markets and Institutions Financial system is one of most intensely regulated sectors of the U.S economy