Fundamentals Of Financial Management
14th Edition
ISBN: 9781305629080
Author: Eugene F. Brigham, Joel F. Houston
Publisher: South-western College Pub (edition 14)
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Question
Chapter 3, Problem 17P
a.
Summary Introduction
To compute: The net operating working capital for 2014 and 2015.
Balance sheet: Balance sheet is a part of financial statements that lists company’s assets, liabilities and shareholders’ fund. It is prepared at the end of accounting period and informs about company’s financial position on that day.
Income Statement: A part of financial statements that lists the income and expenses of business for an accounting year is called income statement. It is prepared at the end of accounting period to know the profitability of the` business.
b.
Summary Introduction
To compute: The
Free Cash Flow: The cash generated over and above required by business operations and capital expenditure is called free cash flow. Statement of cash flow reports the cash flow generated or consumed by the business.
c.
Summary Introduction
To explain: The large increase in dividends in 2015.
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Chapter 3 Solutions
Fundamentals Of Financial Management
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