Write a research paper on the following learning objectives. OBJECTIVES: Explain the difference between accounting value and market value Discuss the difference between accounting income and cash flow Asses the difference between average and marginal tax rates Evaluate how to determine a firm's cash flow from its financial statements
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Write a research paper on the following learning objectives.
OBJECTIVES:
- Explain the difference between accounting value and market value
- Discuss the difference between accounting income and cash flow
- Asses the difference between average and marginal tax rates
- Evaluate how to determine a firm's cash flow from its financial statements
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- Indicate whether the following statements are (True) or (False) and correct the false statements Profit maximization is the main goal of a business organization. The net accounting profit is the difference between the cash inflows and cash outflows of a given project. Financial markets are intermediaries that channel the savings of individual, businesses, and governments into loans or investments.Which of the following would not be a goal of externalusers reading a company’s financial statements?a. Understanding the current financial state of the company.b. Assessing the company’s contribution to social andenvironmental policies.c. Predicting the company’s future financial performance.d. Evaluating the company’s ability to generate cash fromsalesList each of the key financial statements and identify the kinds of information they provide to corporate managers and investors. Estimate a firm’s free cash flow and explain why free cash flow has such an important effect on firm value. Discuss the major features of the federal income tax system.
- You are evaluating your company's recent operating performance and are trying to decide on the relative weights you should put on the income statement, the balance sheet, and the statement of cash flows. Discuss the information each of these statements provides and its role in evaluating operating performance.Answer the following questions for the directors: True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an…Answer the following questions for the directors: True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? True or false, buying property, plant and equipment would be considered a cash outflow from financing? True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? True or false, suppose Auga Company Ltd just started business and was looking for additional capital in order to purchase a property to build their headquarters. If they found an…
- Explain the financial statements that are critical for understanding the company’s ability to earn profits and generate cash in the future.Which of the following would be considered a cash outflow for investing activities? a. cash paid to purchase product for inventory b. cash paid to reacquire common stock c. cash paid to repay debt d. cash paid to purchase equipmentSee images below and answer these questions according to the financial information given Requirements 1. Answer the following questions for the directors: A. True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? B. True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? c. True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans? D. True or false, the financing activities section of the statement of cash flows reflects the cash flows that affect current assets and liabilities? E. True or false, buying property, plant and equipment would be considered a cash outflow from financing? F. True or false, the financing section of the statement of cash flows reflects transactions in the equity accounts and the long-term liability accounts? c. True or false, suppose Auga Company Ltd just started…
- Describe how changes in non-cash items, such as depreciation and deferred taxes, can impact a company's cash flow statement. How can analysts adjust for these non-cash items when using the cash flow statement for financial analysis?The area of finance address the issue of the efficiency of financial market in the allocation of recourses is known as: Corporate finance; Public finance: International finance; 2. A level of revenues, expenses and profit that occurred during a given accounting period are given in: Balance sheet; Income statement; A+B 3. Sales minus cost of goods sold is: Net profit; Operating profit; Gross profit; 4. The assets defined as cash and assets that will turn into cash within a year are defined as: Current assets; Non current assets; Fixed assets: 5. The liabilities due within a year are defined as: Current liabilities; Expenses: Non current liabilities; 6. Collecting of receivables and liquidation of assets concerns: Sources of funds; Uses of funds; Revenues: 7. Uses of funds are: Increase in a liability account and increase in an asset account; Payment of dividends and decrease in asset account; Increase in an asset account and payment of dividends; 8. New bank loan can be…Answer the following questions for the directors: True or false, does the statement of cash flows explains the difference between net income and the change in the cash balance? True or false, investors and management use the statement of cash flows to evaluate a firm's profitability? True or false, the financing activities section of the statement of cash flows includes paying dividends and paying off loans?
