ch 3 financial statements, cash flow, and taxes

Investors are best able to forecast future earnings and dividends for a company using information contained in which of the following

annual report

An important component of operating costs is

depreciation and amortization

For a manufacturing company, cash used in investing activities should

show expenditures on fixed assets that are about equal to the company’s depreciation charges

Depreciation and amortization plus changes in inventories, accrued wages, and taxes are found in which section of the statement of cash flows

operating activities

The amount of retained earnings reported on the balance sheet represents

a claim against assets

The balance sheet is a financial statement that

shows what assets a company owns and who has claims on those assets

Which item on the income statement is described as “the bottom line,” the item most important to stockholders

earnings per share (EPS)

A company with negative free cash flow

will have to raise new money in the capital markets in order to pay for current investments in fixed assets and working capital