CFA Reports Samples For Students

Income Statement:

The income statement reports the revenue and expenses of the firm over a period of time. The income statement is sometimes refered to as the statement of operations or Profit and Loss Statement. The income statement relies on the equation:

In other words, Income Statement serves the purpose of providing the investors and other users of financial statements with most appropriate profitability of the entity net of expenses incurred by the company. In an elaborated manner, income statement helps an investor to assess as how the business has performed by giving a summary of how the business incurs its revenue and ...

The reason for difference in Net Profit from Operations in the Income Statement and Cash Flow from Operations in Cash Flow Statement is because, both the financial statement follows different accounting principle. While the Net Income of the company is calculated by following accrual basis of accounting, the CFO is calculated by strictly following cash basis of accounting. In other words, if the revenue from a unit sold during December is expected to be received in January, the income statement will record revenue in December itself while no such entry would be posted in Cash flow from Operations. Hence, Income ...

Part 2:

Introduction
The Capital Structure Propositions proposed by Nobel Laureates, Franco Modigliani and Merton Miller has a significant relevance even in the modern day financial theory. The propositions proposed by them are popularly known as MM Propositions which they proved under restrictive set of assumptions to counter the traditional approach of capital theory which states that there is always an optimum mix of capital structure for a firm that assists in attaining maximum value for it. The difference in the traditional approach and MM Propositions will be discussed in detail in the succeeding sections, while now we will explain the propositions ...