Financial Statement Analysis
1. There is an old saying on Wall Street - "Cash is a fact, and everything else is opinion." What are some things a statement of cash flows can tell the individual performing FSA that analysis of the Income Statement or Balance Sheet cannot? Explain.
2. What do the key cash flow ratios tell us about a firm? Which are important to our analysis? Why? Are there any potential operating, investing, and/or financing items that are not necessarily presented in the statement of cash flows that could affect this analysis?
Investment fund and security analysis
3. What are some of the advantages and disadvantages of investing in a mutual fund? Explain why the vast array of mutual funds available may be a partial drawback for investors. How can investors assess mutual fund performance?
4. What real asset do you think is best to invest in for the present environment and why? Explain why investor choices may have changed over the last several decades.