Chapter 2 Lecture Notes Chapter 2 Lecture Notes T2.1 Review of Chapter Broad review of accounting concepts. Calculating cash flows. Balance Sheet Assets are bad, Liabilities are good. Review sections of balance sheet. T2.3 Cash flow approach vs. Accounting GAAP approach.
Cash flows occur at different times than accounting entries.
T2.4 Marginal tax brackets. Marginal vs. Average tax rate. Review of various formulas to calculate cash flows. Inc. If there is sufficient time, cover example problems 2.6, 2.11, 2.12, 2.13 at end of chapter.