We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byDwight Wilder
Modified about 1 year ago
CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING FINANCIAL ANALYSIS OF A BUSINESS nDescribe a balance sheet and explain how it can be useful to a business. nPoint out the usefulness of the income statement in making business decisions. nDescribe the importance of cash flow and working capital. nExplain several useful financial ratios. nDescribe how various financial experts can assist business managers. 1616
© SOUTH-WESTERN EDUCATIONAL PUBLISHING Manager needs financial data to... nmake day-to-day decisions nreview past results nplan for the future Owner needs financial data to... ndecide whether to adjust ownership investment ndecide whether to continue business operations Supplier needs financial data to... ndecide whether to extend credit ndecide how much credit to extend Lender needs financial data to... ndecide whether to lend a business money ndecide on the terms of a loan to a business USE OF FINANCIAL REPORTS Union needs financial data to... ndetermine fair increases in wages, salaries, and benefits Government needs financial data to... narrive at fair tax rates ndetect fraudulent practices
© SOUTH-WESTERN EDUCATIONAL PUBLISHING FINANCIAL STATEMENTS nBalance sheet nAssets nLiabilities nCapital nIncome statement nRevenue nExpenses nProfit or loss
© SOUTH-WESTERN EDUCATIONAL PUBLISHING ANALYSIS OF FINANCIAL DATA nCash flow nWorking capital nFinancial ratios
© SOUTH-WESTERN EDUCATIONAL PUBLISHING Shortage of Cash Excess of Cash CASH FLOW
© SOUTH-WESTERN EDUCATIONAL PUBLISHING SOURCES OF FINANCIAL INFORMATION nAccountants nBankers nConsultants nSmall Business Administration
Dr Robert A. Phillips Manchester Science Enterprise Centre Financial Planning: Making Sense of the Numbers.
1. Record a trial balance on a worksheet. 2. Complete the worksheet. 3. Prepare the income statement, statement of owners equity, and balance sheet from.
Financing the Business Chapter 36. How are they different? The easiest way to separate accounting and finance is to think of accounting as the past and.
Learning Objectives 14.1 Describe the importance of accounting and financial information Differentiate between managerial and financial accounting.
1 Accounting Basics Rania A. Azmi University of Alexandria, Department of Business Administration.
Investing and Financing Decisions and the Balance Sheet Chapter 2 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
Management Information Systems Terry DeGroff Burwell, Nebraska Books, Records & Controls.
REVISION LECTURE INTRO TO ACCOUNTING A. Revision Areas Be able to prepare and explain: –trial balance & balance sheet –profit and loss account –cash flow.
Home. Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting Owner’s equity in a corporation is called stockholders’ equity.
PPS t/a Carnegie et al; Accounting: Financial and Organisational Decision Making © 1999 McGraw-Hill Book Co. Aust. 1.1 ACCOUNTING Financial and Organisational.
© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 12 SLIDE Financial Planning Financial Records.
FI3300 Corporation Finance Spring Semester 2010 Dr. Isabel Tkatch Assistant Professor of Finance 1.
INTRODUCTION TO CASH FLOW ANALYSIS Chapter 10. CHAPTER 10 OBJECTIVES Explain the relationships between operating, investing, and financing cash flows.
It is to determine risk from the balance sheet Presented by: Priscilla Wong ( ) Carmen Wong ( ) Carly Wong ( )
CHAPTER 11 RECORD KEEPING AND ACCOUNTING February 12, 2014ENTREPRENEURSHIP (Ms. Hawkins)1 This chapter describes the importance of keeping business records.
Accounting and finance Introduction to accounting.
Kahn, Litwin, Renza & Co., Ltd. How to Develop Financial Projections Presented by Larry Davidson & Anthony Mangiarelli in connection with the Rhode Island.
Building Business Acumen Series: Making Dollars and Sense of Financial Statements Presented by : The Dean Consulting Group Diane D. Dean Principal December.
Cash flow prediction is more useful than earning prediction! Lynn Yan, Christina Leung, Wayne Yip,
FINANCE HIGHER BUSINESS MANAGEMENT UNIT 3. IMPORTANCE OF FINANCE Ensures that there are enough funds available to get the resources needed to meet objectives.
AC4304 Financial Reporting Theory Presentation Casey Lau Gloria Ho Hayley Cheng.
Financial Markets and Institutions 6th Edition PowerPoint Slides for: By Jeff Madura Prepared by David R. Durst The University of Akron.
1 FINC3131 Business Finance Chapter 4: Financial Statement Analysis.
Farm Management Chapter 13 Cash Flow Budgeting. farm management chapter 132 Figure 13-1 Illustration of cash flows.
Copyright 2007 Thomson South-Western Chapter 4 Financial Decisions and Planning.
ONLINE BUSINESS. Business Plan for Online Business What Is Included In A Business Plan? There are four main parts to a business plan: 1. the description.
An important managerial responsibility is obtaining finance. All managers will need to bid for funds. Examples; An important managerial responsibility.
BUSINESS & MANAGEMENT Unit 3.5 Final Accounts 1/39.
© The McGraw-Hill Companies, Inc., 2008 McGraw-Hill/Irwin 1-1 Financial Accounting John J. Wild 4th Edition John J. Wild 4th Edition Information for Decisions.
Sina Enayati. Introduction: There is no doubt that we live in very challenging economic times. The housing slump, severe unemployment, natural disasters,
© 2016 SlidePlayer.com Inc. All rights reserved.