finance chapter 3. Splendid Discrimination.
common-size balance sheets compute all accounts as a percentage of total assets common-size income statements compute all line items as a percent of sales standardized financial statements (1) make it easier to compare financial information, particularly as the company grows (2) They are also useful for comparing companies of different sizes, particularly within the same industry categories of financial ratios (1) Short-term solvency or liquidity ratios (2) Long-term solvency or financial leverage ratios (3) Asset management or turnover ratios (4) Profitability ratios (5) Market value ratios current ratio =CA/CL ability to cover current liabilities with current assets (liquid ratio) quick ratio
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finance chapter 3 splendid discrimination
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sources 1 cash inflow occurs when we sell some
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statement of cash flows statement that summarizes