Answer:
1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.
2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.
b. Profitability ratios are the most important and that is why they are calculated first.
3. Net Cash flow for Crooked Golf is $30,000
Explanation:
1. For a public traded company it is required to share its complete set of Financial Statements which include Balance sheet, Profit or loss statement, Cash flow statement, statement of changes in equity and notes to the accounts. For investors the best information comes from Profit or Loss statement because majority of investors are concerned with the profitability of the company which ultimately results in dividend.
2. a. The ratios analysis have some limitations, the ratios are generally compared with past year ratios which neglects the business/ Industry environment and if the ratios are compared with industry norms, past performance of the company is neglected.
b. Profitability ratios are the most important and that is why they are calculated first.
3. Net Csh flow for Crooked Golf is $30,000.
Calculated as follow,
$90,000 - $60,000
Depreciation is non Cash flow.
= New Forecast
= Previous period's forecast.
= Smoothing Constant
= Previous period's Actual Demand.