| balance sheet | Financial statement showing a firm's accounting value on a particular date.
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| net working capital | Current assets less current liabilities.
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| Generally Accepted Accounting Principles (GAAP) | The common set of standards and procedures by which audited financial statements are prepared.
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| income statement | Financial statement summarizing a firm's performance over a period of time.
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| noncash items | Expenses charged against revenues that do not directly affect cash flow, such as depreciation.
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| average tax rate | Total taxes paid divided by total taxable income.
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| marginal tax rate | Amount of tax payable on the next dollar earned.
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| cash flow from assets | The total of cash flow to creditors and cash flow to stockholders, consisting of the following: operating cash flow, capital spending, and change in net working capital.
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| operating cash flow | Cash generated from a firm's normal business activities.
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| free cash flow | Another name for cash flow from assets.
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| cash flow to creditors | A firm's interest payments to creditors less net new borrowings.
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| cash flow to stockholders | Dividends paid out by a firm less net new equity raised.
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