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1- On a balance sheet, the "retained earnings" amount comes from where?
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EBIDTA in the P&L statement
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The net income line in the income statement (plus dividend payments and minus prior year Retained Earnings)
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The net income line in the income statement (minus dividend payments and plus prior year Retained Earnings)
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The ending cash line in the cash flow statement
2- Determine the amount of capital a company needs in the future using the following five year projected net cash flow analysis. (3 points)
Year 1 -$250
Year 2 -$100
Year 3 -$50
Year 4 $100
Year 5 $250
What are the pros and cons of raising this capital in a single round? (4 points)
Answer & Explanation
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