 |  Fundamentals of Corporate Finance, 4/e Stephen A. Ross,
Massachusetts Institute of Technology Randolph W. Westerfield,
University of Southern California Bradford D. Jordan,
University of Kentucky Gordon S. Roberts,
York University
Working with Financial Statements
Key TermsBelow are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
| Common-Base-Year Statement | A standardized financial statement presenting all items relative to a certain base year amount.
(See Refer to page 65)
|  |  |  | | Common-Size Statement | A standardized financial statement presenting all items in percentage terms. Balance sheets are shown as a percentage of assets and income statements as a percentage of sales.
(See Refer to page 63)
|  |  |  | | Du Pont Identity | Popular expression breaking ROE into three parts: profit margin, total asset turnover, and financial leverage.
(See Refer to page 78)
|  |  |  | | Financial Ratios | Relationships determined from a firm's financial information and used for comparison purposes.
(See Refer to page 66, 77)
|  |  |  | | Sources of Cash | A firm's activities that generate cash.
(See Refer to page 59)
|  |  |  | | Statement of Changes in Financial Position | A firm's financial statement that summarizes its sources and uses of cash over a specified period.
(See Refer to page 61)
|  |  |  | | Uses of Cash | A firm's activities in which cash is spent. Also applications of cash.
(See Refer to page 59)
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