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What is the primary goal of the firm

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Reference no: EM131688150

a) What is the primary goal of the firm? What is the difference between profit maximisation and shareholder wealth maximisation?

b) What is financial ratio analysis? Why is it an important analytical tool? Explain the difference between cross-sectional and time series analysis of financial ratios.

c) Categorise the following as an inflow or outflow of cash:

- A sale of new shares

- A decrease in notes payable

- An increase in inventory

- An increase in accounts payable

d) Why is depreciation categorised as a non-cash charge? Explain your answer.

Reference no: EM131688150

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