title
Classified in Economy
Written at on 
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Chapter 1: Intro to Finance
3 Decisions: Investing, financing, working capital management
Operating Goals: Liquidity, profitability, growth, stability
Governing Objective: Maximize shareholder value
Chapter 2: Cash Flow Identity
Cash From Assets = Cash to Bondholders + Cash to Shareholders
Cash From Assets = Operating Cash Flow – Capital Expenditures – Δ Net Working Capital
Operating Cash Flow = Net Income
+ Depreciation
+ Interest Expense
Capital Expenditures = Δ Net Fixed Assets
+ Depreciation
Δ Net Working Capital = Ending WC
– Beginning WC
Cash From Bondholders = (Interest Expense)
+ Δ Loans
Cash From Shareholders = (Dividends)
+ Δ Equity
Chapter 3: Statement of Cash Flows and Ratios
Operating Activities
Net Income
Depreciation
Δ in Current B/S accounts (exc. Cash)
Investing Activities
(Δ Net Fixed Assets)
(Depreciation)
Financing Activities
N/P
Long-term Debt
Common Stock (source if ↑)
Dividends (net income – Δ retained earnings)
Net Δ In Cash
Ending – Beginning Cash
Assets | Liabilities/Equity | |
Source | ↓ | ↑ |
Use | ↑ | ↓ |