Financial Management: Principles and Applications (Chapter 03: Understanding Financial Statements, Taxes, and Cash Flows)
Learning Objectives:
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- Describe the content of the four basic financial statements and discuss the importance of financial statement analysis to the financial manager.
- Evaluate firm profitability using the income statement.
- Estimate a firm’s tax liability using the corporate tax schedule and distinguish between the average and marginal tax rate.
- Use the balance sheet to describe a firm’s investments in assets and the way it has financed them.
- Identify the sources and uses of cash for a firm using the firm’s cash flow statement
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