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Cash flow, financial statements, ratio analysis

Given your understanding of cash flow, financial statements, ratio analysis and time value of money, provide an in depth example of why the integration of these concepts would be important.

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For example you want to see how efficient is the management of the company at generating profits from their shareholders' equity, which we called ROE ratio.

(Shareholder's equity is the number that you can get from Financial Statement of Balance Sheet as net assets minus liabilities). ROE shows how well a company uses their investment funds ...