Cash flow amounts and their timing should be considered when planning and analyzing operating activities.

The building blocks of financial statement analysis do not include:

Subic Bay Company reports depreciation expense of $40,000 for Year 2. Also, equipment costing $240,000 was sold for a $10,000 loss in Year 2. The following selected information is available for Subic Bay Company from its comparative balance sheet. Compute the cash received from the sale of the equipment.  At December 31 Year 2 Year 1 Equipment $ 510,000   $ 750,000   Accumulated Depreciation-Equipment   328,000     500,000  

The debt ratio helps to assess the risk a company has of failing to pay its debts and is helpful to both its owners and creditors.

Measures taken from a selected competitor or a group of competitors are often excellent standards of comparison for analysis.

The higher the accounts receivable turnover, the less quickly accounts receivable are collected.

Current assets divided by current liabilities is the:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Financial analysis only refers to the communication of relevant financial information to decision makers.

Risk is the uncertainty about the return we will earn.