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Corporate Finance: Financial Statements and Cash Flow
Corporate Finance: Financial Statements and Cash Flow
Corporate Finance: Financial Statements and Cash Flow
Corporate Finance
Chapter Two
Ross Westerfield Jaffe 2
Sixth Edition
Anwar Zahid
Lecturer
Independent University, Bangladesh (IUB)
McGraw-Hill Ryerson 2003 McGrawHill Ryerson Limited
2-1
Liquidity
Income Statement
CANADIAN COMPOSITE CORPORATION
Income Statement
20X2
(in $ millions)
Income Statement
CANADIAN COMPOSITE CORPORATION
Income Statement
20X2
(in $ millions)
Income Statement
CANADIAN COMPOSITE CORPORATION
Income Statement
20X2
(in $ millions)
Income Statement
CANADIAN COMPOSITE CORPORATION
Income Statement
20x2
(in $ millions)
1. GAAP
The matching principal of GAAP dictates that
revenues be matched with expenses. Thus,
income is reported when it is earned, even
though no cash flow may have occurred.
For example,when goods are sold for credit,
sales and profits are reported.
CF ( A ) CF ( B ) CF ( S )