measure of the cash remaining from the operating activities after adjusting for capital expenditures and dividends paid. It takes intoaccount the outflows needed to maintain current operations
the ability of a company to take effective actions to alter the amounts and timing of cash flows so it can respond to unexpected needs and opportunities. It is affected by the company's liquidity and solvency
Owners' (stockholders) equity
the ownership claim on a company's total assets. It consists of capital stock, additional paid-in capital, and retained earnings.
the amount of time that is expected for an asset to be realized or otherwise converted into cash or until a liability ahs to be paid.
debt securities not classified as held-to-maturity or traiding securities. They are reported at fair value, but do not report changes in fair value as part of net income until after they sell the security, and intrest is recorded when earned. Unrealized holding gains and losses are recognized as other comprehensive income and as a separate component of stockholders equity
the obligation that a company reasonab ly expects to liquidate either through the ise of current assets or the creation of other current liabilities. Include: 1. payables resulting from the aquisition of good and services 2. collections received in advance for the delivering of goods or perfomance of services 3. other labilites whose liquidation will take place within the operationg cycle.
obligation a company expects to pay at some date longer than the normal operating factor
measures of how effectively a company is using its assets. ie. recivable turnover, inventory turnover, and asset turnover
cash debt coverage ratio
measure of solvency that indicates a company's ability to repay its liabilites from cash generated from operations
measures the degree of protaction for long term creditors and investors. ie: debt to total assets, times interest earned, the cash debt coverage ratio, and book value per share
working capital (net working capitial)
the excess of total current assets over total current liabilities. Represents the net amount of a company's relatively liquid resources
fiancial statement that shows the fiancial condition of a company at the end of the period by reporting its assets, liabilities, and stockholders' equity
debt and equity securities bought and held primarily for sale in the neat term to generate income on short-term price differences
investments that a companies expect to hold for many years. ie : investments in securities, like bonds or common stock, investments in tangiblem fixed assets not currently used like land , investments set asid in special funds such as pension fund, and investments in nonconsilidated subsidiaries
held to maturity securities
debt securities that a company has the positive intent and ability to hold to maturiy
cash flow activities that include 1. purchasing and disposing of investments and productive long-lived assets using cash, 2. lending money and collecting the loans
presentation in a classified balance sheet that list assets by sections on the left side and liabilites and stockholders' equity by section on the right side
an account that increases either an asset, liability or stockholders equity account.
measures of the degree of success of failure of a given companyor division for a given period of time.ie: profit margin on sale, rate of retun on asset, rate of return on common stock equity, earnings per share, the price earnings ratio, and the payout ratio
cash flow activities include the cash effects of transactions that create revenues and expenses, and thus enter into the determination of the net income
current cash debt coverage ratio
measure of liquidity that indicates a companys ability to pay its short-term debt. computed as cash provided by operating activities by average current liabilities
an account that reduces either an asset, liability, or owners equity account. ie: accumulated depreciation, discounts on bonds payables
cash and other assets a comapny expects to convert into cash, sell, or consume either in one year or in the operation cycle. presented on the balance sheet in order of liquidity
cash flow activites that include : purchasing and disposing of investments and productive long lived assets using cash, leanding money and collecting the loans
statement of cash flows
a basic financial statemnt that provides information about cash receipts, cash payments, and net change in cash resultin from the operating, investing, and financing activities of a company during a period, in a format that reconciles the beginning and ending cash balances
property, plant, equiptment
assets of a durable nature used in the regular oprations of the businss
cash flow from activities that include : obatining cash from issuing debt and repaying the amount borrowed, obtaining cash from stockholders and paying them dividends
cash flow activites that include the cash effects of transactions that create revenues and expenses, and thus entered into the deremination of net income
measures of a company' shirt run ability to pay its maturing obligations. ie: current ratio, the quick or acid test ratio, current cash debt coverage ratio
assets consisnting of cash, accounts receivable, and ownership interest, or a contractual right to recieve or obligation to deliver cash or another fiancial instrument
reserve (appropriated earnings)
an appropriation of retained earnings
the ability of a company to pay its debts as they mature.
material events with an uncertain future.
an evaluation of the relationship among selected financial statent data, expressed in terms of either a percentage, a rate, or a simple proportion
assets that lack physical substance and that ar enot fiancial instruments. Part of long term assets
presentation in a classified balance sheet that lists liabilites and stockjolders equity directly below assets on the same page