Questions from Financial Management

Q: What are the time dimensions of the income statement, the balance

What are the time dimensions of the income statement, the balance sheet, and the statement of cashflows? Hint: Are they videos or still pictures? Explain.

Q: Which ratios would a banker be most interested in when considering whether

Which ratios would a banker be most interested in when considering whether to approve an application for a short-term business loan? Explain.

Q: Describe the duties of the financial manager in a business firm.

Describe the duties of the financial manager in a business firm.

Q: Under what circumstances would market to book value ratios be misleading?

Under what circumstances would market to book value ratios be misleading? Explain.

Q: Why would an analyst use the Modified Du Pont system to calculate

Why would an analyst use the Modified Du Pont system to calculate ROE when ROE may be calculated more simply? Explain.

Q: What is a financial ratio?

What is a financial ratio?

Q: Why do analysts calculate financial ratios?

Why do analysts calculate financial ratios?

Q: Explain how the cash budget and the capital budget relate to pro

Explain how the cash budget and the capital budget relate to pro forma financial statements.

Q: Explain how management goals are incorporated into pro forma financial statements.

Explain how management goals are incorporated into pro forma financial statements.

Q: Explain the significance of the term additional funds needed.

Explain the significance of the term additional funds needed.