 |  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
Learning ObjectivesAfter studying this chapter in the textbook, you should be able to:
| Distinguish between and give examples of activities that represent sources of cash and those that represent uses of cash. |
| | | | Be familiar with the preparation of the statement of changes in financial position. |
| | | | Prepare common-size balance sheets, income statements and statements of cash flow. |
| | | | Be familiar with the major categories of financial ratios and be able to compute key ratios within each category. |
| | | | Be able to decompose return on equity into its individual components according to the Du Pont identity. |
| | | | Analyze the financial well being of a company with respect to time and relative to representative companies within the same industry. |
| | | | Be aware of major problems that arise in the use of financial ratio analysis. |
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2002 McGraw-Hill Higher Education