Homework
I. What does it mean when investing activities are reported on the statement of cash flows? Provide three examples of investing activities.
II. What does it mean when financing activities are reported on the statement of cash flows? Provide three examples.
III. Both the direct and indirect methods are used to prepare the cash flow? What is the difference between these two methods?
IV. What are the four building blocks of financial statement analysis? Explain the purpose of each one.
V. What do these ratios tell us about a company? How are they computed?
i. Working capital
ii. Acid-test ratio
iii. Current ratio
VI. Which type of analysis...
i. Measures key relationships between financial statement items?
ii. Compares a company's financial condition across time?
iii. Compares a company's financial condition to a base amount?
VII. What is the difference between comparative financial statements and common size comparative financial statements?
Format your homework according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the homework, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.