income statement. we add back to earnings because it is a non cash charge.
statement of cash flows. we have to deduct capital expenditures from earnings.
cost of goods sold
income statement. net sales-COGS=
gross profit-operating expenses. income statement
net income before taxes-provision for income taxes. income statement. accounting profit.
earnings per share.
income statement. net income/shares outstanding
income statement. number of stocks outstanding
income statement. assume all convert to stock, more shares.
3 sections of income statement
1. continuing operations 2. nonrecurring items, discontinued operations 3. earnings per share
noncurrent. balance sheet.
net book value
original purchase price of properties (equipment) less accumulated depreciation
balance sheet liabilities
balance sheet. money invested on day 1 for stock
balance sheet. when a company buys another business, the excess of the price paid over fair market values when combined.
sections of cash flow
operating, investing, financing
cash flows, from income statement