22. TABLE 1-6 The Book Value of Equity is a Poor Surrogate for the Market Value of Equity, December 31, 2007
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Notes de l'éditeur
1/ At my point, the production is in the left side from the circle, and when starting the operation, most companies must have production first to earn money. 2/ initial cash that means the owner’s equity. 3/ working capital is some kinda cash that support for operation, like tax, changes in equity, changes in liabilities, interest, etc. 4/ the investment capital is some kinda money that support for buying tangible assets, that mainly in the left side in the circle.
1/ the depreciation is concerned to assets while amortization is concerned to some kinda loans. And depreciation is relevant to deduct assets thorough its operation. In business’s views, they quite like depreciation, coz it will influenced to income tax. 2/ the AP is accounts payable and it fit for the left side like buying fixed assets and production. 3/ the profits and the cash flow does not the same cos the profits are burdened