## Info

Notice that the answer has a negative sign; as we discussed above, that's because it represents an outflow today in exchange for the \$1,000 inflow later.

Notice that the answer has a negative sign; as we discussed above, that's because it represents an outflow today in exchange for the \$1,000 inflow later.

Concept Building Chapter sections are intentionally kept short to promote a step-by-step, building block approach to learning. Each section is then followed by a series of short concept questions that highlight the key ideas just presented. Students use these questions to make sure they can identify and understand the most important concepts as they read. See Chapter 1, page 12; Chapter 3, page 73 for examples.

Summary Tables These tables succinctly restate key principles, results, and equations. They appear whenever it is useful to emphasize and summarize a group of related concepts. For examples, see Chapter 2, page 38; Chapter 7, page 208.

Labeled Examples Separate numbered and titled examples are extensively integrated into the chapters as indicated below. These examples provide detailed applications and illustrations of the text material in a step-by-step format. Each example is completely self-contained so students don't have to search for additional information. Based on our classroom testing, these examples are among the most useful learning aids because they provide both detail and explanation. See Chapter 2, page 25; Chapter 4, page 116.

Building the Balance Sheet I EXAMpLE 21 I—.

A firm has current assets of \$100, net fixed assets of \$500, short-term debt of \$70, and long- '-■—'

term debt of \$200. What does the balance sheet look like? What is shareholders' equity? What is net working capital?

In this case, total assets are \$100 + 500 = \$600 and total liabilities are \$70 + 200 = \$270, so shareholders' equity is the difference: \$600 - 270 = \$330. The balance sheet would thus look like:

Assets