Lesson 3

• balance sheet, provides a snapshot of a firm's financial position at one point in time.
• Income Statement, summarizes a firm's revenues and expenses over a given period of time.
• Statement of Cash flows, reports the impact of a firm's activities on cash flows over a given period of time.
• Statement of stockholders' equity, shows how much of the firm's earning were retained, rather than paid out as dividends.
• Income Statement provides a financial summary of a company's operating results during a specified period, they are generally computed monthly by management and quarterly for tax purposes.
• The balance sheet presents a summary of a firm's financial position at a given point in time.
• statement of retained earning reconciles the net income earned during a given year, and any cash dividends paid, with the change in retained earnings between the start and the end of that year.
• Statement of cash flow, provides summary of the firm's operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the period.
• Operating flows, cash flows directly related to sale and production of the firm's products and services.
• Investment flows, cash flows associated with purchase and sale of both fixed assets and equity investments in other firms.
• Financing flows, cash flows that result from debt and equity financing transactions; include incurrence and repayment of debt, cash inflow from the sale of stock, and cash outflows to repurchase a stock or pay cash dividends
• OCF (Operating Cash Flow) is the cash flow a firm generates from normal operations- from the production and sale of its goods and services.
• Free Cash Flow (FCF) is the amount of cash flow available to investors.