FINAL QUESTIONS

Please have these on a paper submitted by the last class.

Q1. What is meant by the term "finance" as it was used in this course?

1.1 Define the term "financial statement" and, provide a copy of a financial statement from a company (a printout of a balance sheet and an income statement from Google Finance. Yes, the terms have to be defined and described).

1.2 What is meant by the term "historic perspective" as it relates to a financial statement? Provide a copy of such a perspective from Google Finance.

1.3 From the financial statement that you have provided in Google Finance:

1.3.1 Present a Simple Balance Sheet as depicted in Figure 2-1
1.3.2 Depict the % of total sales as depicted in Table 2-2

Q2. What is an investor, an investment and where does an investment appear within the financial statements?

Q2.1 How do investors use financial statements (e.g. what is some of the information that investors "glean" from financial statements?

Q2.2 Where (be specific) would an investor find this information from the financial statement that you used from Google Finance in the prior questions?

Q3. What is "debt" and what are the characteristics of debt?

Q3.1 What are the different types of debt?

Q3. From the financial statements you are using from Google Finance in the prior questions, what kind of debt is the company using?

Q4. What is meant by the term "financial planning and control"?

Q5. What is meant by the term "operating break-even analysis"?

Q5.1 For the company whose financial statement you are using from Google Finance for the prior questions, how does its revenues relate to its operating costs and profits?

Q6. What are the names of the three major rating agencies?

Q6.1 Where, in a company's financial statement, does the "rating" affect the company?

Q7. If an individual earns $25,000 a year and wants to save 5% of her pay, what would be the fiscal impact of opening a 401(k) versus and non-401(k) savings instrument?