FIL 240 1st Edition Lecture 5 Outline of Last Lecture I. Financial IntermediationII. Federal Reserve Acta. Definition of Federal Reserve Boardb. District Banksc. Regulation & Supervisiond. Federal Reserve Dutiese. Definition of Fiscal Policyf. Definition of Monetary Policyg. Federal Reserve PolicyIII. 3 Tools of Monetary policya. Required Reserve Ratiob. FOMC Outline of Current Lecture I. Financial StatementsII. Accounting Equationsa. Definition of DepreciationIII. Income StatementIV. Balance Sheeta. Statement of Retained EarningsCurrent Lecture- Does not include opportunity cost- Covers non-cash flow informationI. Financial Statements- Balance sheet- Income statement- Statement of cash flows- Statement of stockholders’/owner’s equity- Notes to the financial statements (Most important part)II. Accounting Equations- Assets = Liabilities + Stockholders’ Equity (Fundamental)- Revenues – Expenses = Income- Depreciation – capitalized expense recognized in the current period.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.III. Income Statement- Revenues- - COGS- Gross Margin- - SG & A Expense- - Depreciation- Operating Income- - Interest Expense- Net IncomeIV. Balance SheetAssets Current AssetsCash & Cash EquivalentsAccounts ReceivablePrepaid Expenses – Rent, Insurance, etc.Inventory Total Current Assets Long-Term Assets (Property, Plant, & Equipment)- Accumulated Depreciation Total Long-Term AssetsTotal AssetsLiabilities Short-Term LiabilitiesAccounts PayableShort-Term AccrualsCurrent Portion of Long-Term Debt Total Short-Term Liabilities Long-Term LiabilitiesBonds PayableNotes Payable Total Long-Term LiabilitiesTotal LiabilitiesOwner’s/Stockholders’ EquityCommon Stock (at par, additional paid-in capital)Retained Earnings (from statement of retained earnings)Total Owner’s/Stockholder’s EquityTotal Liabilities & Stockholders’ Equitya. Statement of Retained EarningsBeginning RE+ Net Income- DividendsRE Ending
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