Reference no: EM132809059

1. A company has learned that due to a new accounting rule, it can start capitalizing R&D costs instead of expensing them.

This question has four parts to it:

Part I) What is the impact on the company's EBITDA?

Part II) What is the impact on the company's Net Income?

Part III) What is the impact on the company's cash flow?

Part IV) What is the impact on the company's valuation?

2. What, in your opinion, makes a good financial model? Discuss

3. What happens on the income statement if inventory goes up by $10?

4. If I could use only one statement to review the overall health of a company, which statement would I use, and why?

5. What methods do you use to compare the liquidity, profitability, and credit history of a company?

6. Highlight the difference between real money and nominal money. Also, explain the meaning of treasury bills.

7. Can you highlight the meaning and purpose of a deferred tax liability?

8. A company buys an asset; walk me through the impact on the 3 financial statements