35%
the marginal tax rate paid by the corporations with the largest incomes is 35%.
#NAME?
revenues - expenses
accounts payable
money the firm owes to its suppliers
accounts receivable
money owed to the firm by its customers
assets
liabilities + shareholder's equity =
assets - liabilities
shareholder's equity =
average tax rate
total taxes paid divided by total taxable income
balance sheet
snapshot of the firm. a convenient way of organizing and summarizing what a firm owns (assets), what a firm owes (liabilities), and the difference between the two (the firm's equity) at a given point in time.
bondholders
long-term creditors
bonds
long-term debt
cash flow from assets
cash flow to creditors + cash flow to stockholders
cash flow from assets
the total of cash flow to creditors and cash flow to stockholders, consisting of the following: operating cash flow, capital spending, and change in net working capital.
cash flow to creditors
a firm's interest payments to creditors less net new borrowings.
cash flow to creditors and stockholders
there is a cash flow identity much like the balance sheet identity. it says that cash flow from assets equals _________ ___________ ___ _______ and _________.
cash flow to stockholders
dividends paid out by a firm less net new equity raised.
current or fixed
assets are classified as either ______ or ________.
current or long-term
liabilities are listed as either ______ or _________.
depreciation
net income as it is computed on the income statement is not cash flow. a primary reason is that _________, a noncash expense, is deducted when net income is computed.
financial leverage
the use of debt in a firm's capital structure
free cash flow
another name for cash flow from assets
Generally Accepted Accounting Principles (GAAP)
The common set of standards and procedures by which audited financial statements are prepared.
illiquid asset
an asset that cannot be quickly converted to cash...