Financial Management and Planning

Financial statements

Profitability statements

Statements of cash flow

Forecasts

Long term assets

Short term assets and liabilities

Long term liabilities

Only short term assets

Leverage ratios

Profitability ratios

Liquidity ratios

Activity ratios

Ledger balance

Cash and bank balances

Cash book and bank book

Trial Balance

Firms need cash to service debt, dividends and expenses

Companies that generate healthy profit may be unable to convert profits into cash

Cash flow ratios help the analyst assess the long-term profitability of a firm

Both (a) and (b)

Financial leverage

Operating leverage

Fixed Assets

None of these

Gross working capital

Permanent working capital

Temporary working capital

Net working capital

Solvency

Shareholder

Profitability

Capital Structure

Savings function

Liquidity function

Risk function

Social function

the financing section

the “extraordinary” section

a separate schedule or note to the financial statements

the stockholders’ equity section