School of Business, Sun Yat-sen University Lesson notes Lesson 10 Understanding and Using Financial Statements Learning objectives 1. Describe the need and supply for financial statement analysis. 2. Learn basic financial statement analytical procedures
– Ch.15 Financial Forecasting and Working Capital Policy – Ch.16 The Management of Cash and Marketable Securities – Ch.17 Management of Accounts Receivable and Inventories
8. Financial Markets a. Insurance Markets b. Moral Hazard C. Adverse Selection with one price contracts d. Simple Financial Markets-Comparative Statics e. Option Pricing and Redundant Assets
Fund Analysis, Cash-Flow Analysis, and Financial Planning Flow of Funds(Sources and Uses) Statement Accounting Statement of Cash-Flows- ash- Flow Forecasting Range of Cash-Flow- Estimates Forecasting Financial Statements
Chapter 3 Contents Review of Financial The Relation Among Statements Ratios Market Values v. Book Limitations of Ratio Values Analysis Accounting v. Economic Purpose and Process of Measures of Income Financial Planning
1.Describe the usefulness of a conceptual framework. 2.Describe the FASB's efforts to construct a conceptual framework. 3.Understand the objectives of financial reporting. 4.Identify the qualitative characteristics of accounting information. 5.Define the basic elements of financial statements. 6.Describe the basic assumptions of accounting. 7.Explain the application of the basic principles of accounting. 8.Describe the impact that constraints have on reporting accounting information
Tracing Cash and Net Working Capital The Operating Cycle and the Cash Cycle Some Aspects of Short-Term Financial Policy The Cash Budget Short-Term Borrowing A Short-Term Financial Plan
