FINC20018T22017 Financial Statements, Analysis, Time Value of Money, Risk and Return
Question 1 [Theory]: Understanding Financial Statements [Chapter 3 Study Questions 3.1, 3.2, 3.3, 3.4] Develop your responses by reviewing peer-reviewed articles, professional publications and/or credible texts. Part 1 Describe the content and the importance of the balance sheet and the income statement. Part 2 From the firm’s perspective, how are dividends different from interest payments? Part 3 What is a firm’s net working capital, and what does it tell you about the liquidity of a firm? Question 2 [Calculation-based]: The Income Statement [Chapter 3 Study Questions 3.2 and Study Problems 3.1, 3.2, 3.3] (Refer to Example on page 46 of Textbook) Construct an Income Statement. Use an Excel spreadsheet and/or tables to present your work. Show all workings.…
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