Q: Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?
Q: Walk me through a cash flow statement.
Q: What is working capital?
Q: Is it possible for a company to show positive cash flows but be in grave trouble?
Q: How is it possible for a company to show positive net income but go bankrupt?
Q: I buy a piece of equipment, walk me through the impact on the 3 financial statements.
Q: Why are increases in accounts receivable a cash reduction on the cash flow statement?
Q: How is the income statement linked to the balance sheet?