Question: 1: Why do capital expenditures increase assets (PP&E), while other cash outflows, like paying salary, taxes, etc., do not create any asset, and instead instantly create an expense on the income statement that reduces equity via retained earnings?
2: Walk me through a cash flow statement.
3: What is working capital?
4: Is it possible for a company to show positive cash flows but be in grave trouble?
5: How is it possible for a company to show positive net income but go bankrupt?
6: I buy a piece of equipment, walk me through the impact on the 3 financial statements.
7: Why are increases in accounts receivable a cash reduction on the cash flow statement?
8: How is the income statement linked to the balance sheet?
9: What is goodwill?
10: What is a deferred tax liability and why might one be created?