1. How do you reconcile or connect the balance sheet and the income statement? Your answers should be based on net income dividends, and retained earnings. 2. Explain the difference between the statement of cash flows and the cash flow analysis 3. Gíve real-world examples of (i) the present value of a SINGLE cash flow and (ii) the present value of MULTIPLE, EQUÀL, REGULAR, and FINITE cash flows. 4. Explain the price-earnings ratio. What is it trying to measure?

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 16CE
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1. How do you reconcile or connect the
balance sheet and the income statement?
Your answers should be based on net income,
dividends, and retained earnings.
2. Explain the difference between the
statement of cash flows and the cash flow
analysis
3. Gíve real-world examples of (i) the present
value of a SINGLE cash flow and (ii) the
present value of MULTIPLE, EQUAL,
REGULAR, and FINITE cash flows.
4. Explain the price-earnings ratio. What is it
trying to measure?
Transcribed Image Text:1. How do you reconcile or connect the balance sheet and the income statement? Your answers should be based on net income, dividends, and retained earnings. 2. Explain the difference between the statement of cash flows and the cash flow analysis 3. Gíve real-world examples of (i) the present value of a SINGLE cash flow and (ii) the present value of MULTIPLE, EQUAL, REGULAR, and FINITE cash flows. 4. Explain the price-earnings ratio. What is it trying to measure?
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