Business
18.10.2020 07:49
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1. What kind of financial information is a publicly traded company required to provide

1. What kind of financial information is a publicly traded company required to provide to its stockholders? Which financial statement do you think provides the best information for investors? 2. (a) Discuss some of the limitations associated with performing ratio (financial statement) analysis. (b) What is the most important ingredient (input) in completing ratio analysis and why? 3. Crooked Golf's most recent income statement shows that net income was $90,000, depreciation was $25,000 and taxes were $60,000. What was Crooked Golf's net cash flow? For this particular question and other problem related questions, YOU MUST show the formula/process that led to the answer/solution. Writing down the answer/solution without a credible process/formula is unacceptable. This is a required practice in a finance course. Please note.
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demigod0701
demigod0701
4,6(85 marks)

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Cash flow for Crooked Golf is $30,000

Explanation:

1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.

2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.

b. Profitability ratios are the most important and that is why they are calculated first.

3. Net Csh flow for Crooked Golf is $30,000.

Calculated as follow,

$90,000 - $60,000

Depreciation is non Cash flow.

hardwick744
hardwick744
4,5(46 marks)
C. Playing a new game before it is sold to the public

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