Finance Chapter 2

Ace your homework & exams now with Quizwiz!

accounting identity

assets= liabilities + equity

taxes

= (EBIT - interest expense) * tax rate

net income

= EBIT - interest expense - taxes

net new borrowing from owners

= change in equity

net working capital

= current assets - current liabilities

net new borrowing

= ending long-term liabilities - beginning long term liabilities

net capital spending

= ending net fixed assets - beginning net fixed assets + depreciation

cash flow to creditors

= interest expense - net new borrowing from creditors

accumulated depreciation

= last years accumulated depreciation (balance sheet) + current depreciation expense (income statement)

EBIT

= revenue - operating expenses

retained earnings

= total assets - common stock - total liabilities

operating cash flow

=EBIT + depreciation - taxes

cash flow to owners

=dividends - net new borrowing from owners

change in equity

=ending common stock and paid in surplus - beginning common stock and paid in surplus

change in net working capital

=ending net working capital - beginning net working capital

cash flow from assets

=operating cash flow - net capital spending - change in net working cacpital


Related study sets

1.3 Culture EAQ, Culture adaptive quiz, Adaptive quiz: professional identity, 38 Case Study, section 2 1st semester

View Set

Chapter Quiz EXAM FX (Completing the applications, Underwriting, and Delivering the policy.

View Set

OCR A Level Biology: Cellular Control

View Set