Exam 2: Introduction to Financial Statement Analysis

Use the table for the question(s)below. Luther Corporation Consolidated Income Statement Year ended 30 June (in $ millions) -Refer to the income statement above. Luther's earnings before interest, taxes, depreciation, and amortisation (EBITDA)for the year ending 30 June 2018 is closest to:

Company A has current assets of $42 billion and current liabilities of $31 billion. Company B has current assets of $2.7 billion and current liabilities of $1.8 billion. Which of the following statements is correct, based on this information?

Luther Corporation Consolidated Balance Sheet 30 June 2017 and 2018 (in $ millions) -Refer to the balance sheet above. If in 2018, Luther has 10.2 million shares outstanding and these shares are trading at $16 per share, then what is Luther's enterprise value?

The firm's statement of cash flows only uses the balance sheet and net income to determine the amount of cash a firm has generated and how it has used that cash during a given period.

What role do external auditors play in the firm's financial reporting process?