At the end of this lecture, you will be able to:
1.Understand the differences and similarities that exist between a personal income statement and a business income statement.
2.Distinguish between fixed and variable expenses.
3.Distinguish between assets (uses of funds) and liabilities and equity (sources of funds).
4.Build a business balance sheet.
5.Build a business cash-flow statement.
6.Identify the elements of the cash flow cycle.
7.Explain how working capital policies are established and how they influence financial needs.
RELATED: FINANCIAL STATEMENT ANALYSIS