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This paper is an updated version of a previous working paper, Capital Budgeting in the Presence of Managerial Overconfidence and Optimism, by the same authors. Financial support by the Rodney L. white Center for Financial Research is gratefully acknowledged. The authors would like to thank Andrew Abel, Jonathan Berk, Domenico Cuoco, David Denis, Janice Eberly, Robert Goldstein, Peter Swan, and seminar
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Task Team of FUNDAMENTAL ACCOUntING hool of Business, Sun Y at-sen University Lesson 9 Financial Statements excises 1. The following financial statement information is known about five separate proprietorships Company Company Company Company Company December 31. 2001
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Role of financial management Career opportunities Forms of business organization Goals of the corporation Issues of the new millenium Agency relationships
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Chapter F15 Power notes Financial Statement Analysis Learning Objectives Basic Analytical Procedures 2. Solvency Analysis 3. Profitability Analysis 4. Summary of Analytical Measures 5. Corporate Annual Reports
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Chapter F9 Power notes Fixed Assets and Intangible Assets Learning objectives 1. Nature of Fixed Assets 2. Accounting for Depreciation 3. Capital and Revenue Expenditures 4. Disposal of Fixed Assets 5. Leasing Fixed Assets 6. Internal Control of fixed assets 7 Natural resources 8. Intangible Assets 9. Financial Reporting 10. Financial Analysis and Interpretation
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Prelude to Comprehensive Analysis Steps in Analyzing Financial Statements Explicitly define the analysis objectives Formulate specific questions and criteria consistent with the Macintosh PICT analysis objectives image format is not supported Identify the most effective and efficient tools of analysis
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Analyzing Profitability Focus of Profitability Analysis Profitability analysis is key part of financial statement analysis All financial statements are pertinent to profitability analysis Emphasis of profitability analysis is on the income statement
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Financial Reporting Environment Regulators Industry Alternative Information Practices Sources Economy and Industry Information
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Task Team of FUNDAMENTAL ACCOUntING hool of Business, Sun Y at-sen University Lesson 10 Understanding and Using financial Statements Exercise Short answer questions 1. What are the possible decisions that can be made with the use of financial analysis? Answer: Share investment decisions. This
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Outlines A General View of Financial statements Income statement Balance sheet Statement of owners'equity’ Simple Illustration
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