Solution Manual for Corporate Finance 10th
Edition by Stephen Ross, Randolph W.
Westerfield, Jeffrey Jaffe
Link full download:
http://testbankcollection.com/download/corporate-finance-10th-
edition-by-ross-solutions-manual/
Chapter 02 -
Financial Statements and Cash Flow
Chapter 2
FINANCIAL STATEMENTS AND CASH FLOW
SLIDES
2.1 Key Concepts and Skills
2.2 Chapter Outline
2.3 Sources of Information
2.4 The Balance Sheet
2.5 U.S. Composite Corporation Balance Sheet
2.6 Balance Sheet Analysis
2.7 Liquidity
2.8 Debt versus Equity
2.9 Value versus Cost
2.10 The Income Statement
2.11 U.S.C.C. Income Statement
2.12 U.S.C.C. Income Statement
2.13 U.S.C.C. Income Statement
2.14 U.S.C.C. Income Statement
2.15 Income Statement Analysis
2.16 GAAP
2.17 Non-Cash Items
2.18 Time and Costs
2.19 Taxes
2.20 Marginal versus Average Rates
2.21 Net Working Capital
2.22 U.S.C.C. Balance Sheet
2.23 Financial Cash Flow
2.24 U.S.C.C. Financial Cash Flow
2.25 U.S.C.C. Financial Cash Flow
2.26 U.S.C.C. Financial Cash Flow
2.27 U.S.C.C. Financial Cash Flow
2.28 U.S.C.C. Financial Cash Flow
2.29 U.S.C.C. Financial Cash Flow
2.30 U.S.C.C. Financial Cash Flow
2.31 The Statement of Cash Flows
2.32 U.S.C.C. Cash Flow from Operations
website, in whole or part.
,Chapter 02 - Financial Statements and Cash Flow
2.33 U.S.C.C. Cash Flow from Investing
2.34 U.S.C.C. Cash Flow from Financing
2.35 U.S.C.C. Statement of Cash Flows
2.36 Cash Flow Management
2.37 Quick Quiz
2-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a
CHAPTER WEB SITES
Section Web Address
2.1 finance.yahoo.com
money.cnn.com
www.sec.gov
www.fasb.org www.ifrs.org
2.3 www.irs.gov
CHAPTER ORGANIZATION
2.1 The Balance Sheet
Liquidity
Debt versus Equity
Value versus Cost
2.2 The Income Statement
Generally Accepted Accounting Principles
Noncash Items
Time and Costs
2.3 Taxes
Corporate Tax Rates
Average versus Marginal Tax Rates
2.4 Net Working Capital
2.5 Financial Cash Flow
2.6 The Accounting Statement of Cash Flows
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
2-2
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
, Chapter 02 - Financial Statements and Cash Flow
2.7 Cash Flow Management
ANNOTATED CHAPTER OUTLINE
Slide 2.0 Chapter 2 Title Slide Slide 2.1 Key Concepts and Skills Slide
2.2 Chapter Outline
Slide 2.3 Sources of Information This slide contains hyperlinks to
commonly used sources of financial data.
2.1. The Balance Sheet
Slide 2.4 The Balance Sheet
The balance sheet provides a snapshot of the firm’s financial position at a
specific point in time. Thus, it is commonly referred to as a “stock”
statement, whereas the income statement would be considered a “flow”
statement since it covers a period of time.
The balance sheet identity is: Assets ≡ Liabilities + Stockholder’s Equity
Slide 2.5 U.S. Composite Corporation Balance Sheet
Assets: The Left-Hand Side
Assets are divided into several categories. Make sure that students recall
the difference between current and fixed assets, as well as tangible and
intangible assets.
Assets are listed in order of how long it typically takes for the specific
asset to be converted to cash, with those taking the shortest time being
listed first.
Liabilities and Equity: The Right-Hand Side
This portion of the balance sheet represents the sources of funds used to
finance the purchase of assets.
Lecture Tip: It may be helpful to review slides 4 through 7 from
Chapter 1, which highlight the general composition of a balance
sheet.
Since sources and uses must equal, the balance sheet is an equality:
Assets = Liabilities + Stockholder’s Equity
2-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
Edition by Stephen Ross, Randolph W.
Westerfield, Jeffrey Jaffe
Link full download:
http://testbankcollection.com/download/corporate-finance-10th-
edition-by-ross-solutions-manual/
Chapter 02 -
Financial Statements and Cash Flow
Chapter 2
FINANCIAL STATEMENTS AND CASH FLOW
SLIDES
2.1 Key Concepts and Skills
2.2 Chapter Outline
2.3 Sources of Information
2.4 The Balance Sheet
2.5 U.S. Composite Corporation Balance Sheet
2.6 Balance Sheet Analysis
2.7 Liquidity
2.8 Debt versus Equity
2.9 Value versus Cost
2.10 The Income Statement
2.11 U.S.C.C. Income Statement
2.12 U.S.C.C. Income Statement
2.13 U.S.C.C. Income Statement
2.14 U.S.C.C. Income Statement
2.15 Income Statement Analysis
2.16 GAAP
2.17 Non-Cash Items
2.18 Time and Costs
2.19 Taxes
2.20 Marginal versus Average Rates
2.21 Net Working Capital
2.22 U.S.C.C. Balance Sheet
2.23 Financial Cash Flow
2.24 U.S.C.C. Financial Cash Flow
2.25 U.S.C.C. Financial Cash Flow
2.26 U.S.C.C. Financial Cash Flow
2.27 U.S.C.C. Financial Cash Flow
2.28 U.S.C.C. Financial Cash Flow
2.29 U.S.C.C. Financial Cash Flow
2.30 U.S.C.C. Financial Cash Flow
2.31 The Statement of Cash Flows
2.32 U.S.C.C. Cash Flow from Operations
website, in whole or part.
,Chapter 02 - Financial Statements and Cash Flow
2.33 U.S.C.C. Cash Flow from Investing
2.34 U.S.C.C. Cash Flow from Financing
2.35 U.S.C.C. Statement of Cash Flows
2.36 Cash Flow Management
2.37 Quick Quiz
2-1
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a
CHAPTER WEB SITES
Section Web Address
2.1 finance.yahoo.com
money.cnn.com
www.sec.gov
www.fasb.org www.ifrs.org
2.3 www.irs.gov
CHAPTER ORGANIZATION
2.1 The Balance Sheet
Liquidity
Debt versus Equity
Value versus Cost
2.2 The Income Statement
Generally Accepted Accounting Principles
Noncash Items
Time and Costs
2.3 Taxes
Corporate Tax Rates
Average versus Marginal Tax Rates
2.4 Net Working Capital
2.5 Financial Cash Flow
2.6 The Accounting Statement of Cash Flows
Cash Flow from Operating Activities
Cash Flow from Investing Activities
Cash Flow from Financing Activities
2-2
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
, Chapter 02 - Financial Statements and Cash Flow
2.7 Cash Flow Management
ANNOTATED CHAPTER OUTLINE
Slide 2.0 Chapter 2 Title Slide Slide 2.1 Key Concepts and Skills Slide
2.2 Chapter Outline
Slide 2.3 Sources of Information This slide contains hyperlinks to
commonly used sources of financial data.
2.1. The Balance Sheet
Slide 2.4 The Balance Sheet
The balance sheet provides a snapshot of the firm’s financial position at a
specific point in time. Thus, it is commonly referred to as a “stock”
statement, whereas the income statement would be considered a “flow”
statement since it covers a period of time.
The balance sheet identity is: Assets ≡ Liabilities + Stockholder’s Equity
Slide 2.5 U.S. Composite Corporation Balance Sheet
Assets: The Left-Hand Side
Assets are divided into several categories. Make sure that students recall
the difference between current and fixed assets, as well as tangible and
intangible assets.
Assets are listed in order of how long it typically takes for the specific
asset to be converted to cash, with those taking the shortest time being
listed first.
Liabilities and Equity: The Right-Hand Side
This portion of the balance sheet represents the sources of funds used to
finance the purchase of assets.
Lecture Tip: It may be helpful to review slides 4 through 7 from
Chapter 1, which highlight the general composition of a balance
sheet.
Since sources and uses must equal, the balance sheet is an equality:
Assets = Liabilities + Stockholder’s Equity
2-3
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or
distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in
whole or part.
