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 over 2 years 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
Chapter 15 Business Financial Records 1 Chapter 15 Business Financial Records ©2008 Thomson/South-Western.
Overview of Financial Statement Analysis Chapter I.
©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Business Financial Records Types of Financial Records Budgets and.
Chapter 1-1 Tax Accounting. Chapter 1-2 Introduction to Accounting Accounting Principles, Ninth Edition.
SMALL BUSINESS MANAGEMENT Chapter 7 Financing the Small Business.
Chapter 1 Accounting: The Language of Business. Introduction Accounting - a process of identifying, recording, summarizing, and reporting economic information.
CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING FINANCIAL RECORDS IN A BUSINESS nDiscuss record keeping systems needed in large and small businesses.
Elements of Financial Statements. Purpose of financial statements Reporting accounting information to external decision makers.
1 Understanding the Financial Statements Lecture No.35 Professor C. S. Park Fundamentals of Engineering Economics Copyright © 2005.
Reporting and Analyzing Cash Flows Chapter 17. Purposes of the Statement of Cash Flows Designed to fulfill the following: – predict future cash flows.
1. The efficient management of finance is important to the success of an organisation. 2.
© South-Western Publishing Slide 1 COMMERCIAL LENDING Commercial Loans Commercial Credit Analysis Small Business Loan Programs.
Types of stakeholder Internal: internal to the firm Internal: internal to the firm –employees –shareholders /owners Connected: connected by a relationship.
1 Chapter 1 Accounting as a Form of Communication Financial Accounting 4e by Porter and Norton.
Chapter 36 Financing the Business Section 36.1 Preparing Financial Documents Section 36.2 Financial Aspect of a Business Plan Section 36.1 Preparing Financial.
Objective 4.01 Understanding Financial Management. 1.
1–11–1 Copyright © Cengage Learning. All rights reserved. Chapter 1 Uses of Accounting Information and the Financial Statements.
Chapter # 5 Financial Plan. Financial Plan for start up business A financial plan is a series of steps or goals used by an individual or business, the.
The CASH FLOW Statement (Statement of changes in financial position) Text Chapter 18, Pages , Practice Questions: 1.BE18-1, BE18-2, BE18-3,
WHAT IS ACCOUNTING? Accounting is the identifying, recording and communication of financial events that affect a company.
Primary Objective of Financial Reporting Invest?? Borrow $$?? Sell stocks or bonds?? Start new business?? Loan $$?? Extend credit $$?? LO1 Provide information.
Section 36.1 Financial Analysis Chapter 36 financing the business Section 36.2 Financial Statements.
Extending Credit. Agenda Underwriting 5 C’s of credit Needed Materials Financials Items you might look at What an underwriter does 2.
Financial Management F OR A S MALL B USINESS. FINANCIAL MANAGEMENT 2 Welcome 1. Agenda 2. Ground Rules 3. Introductions.
Chapter 1 Finance and Business. Areas of Finance Business Finance – Decision making within a business setting Investments – Allocation of money to earn.
Finance and Accounts Analysing Accounts Pr. Zoubida SAMLAL.
ADJUSTED TRIAL BALANCE An Adjusted Trial Balance is prepared after all adjusting entries have been journalized and posted. It shows the balances of all.
Personal Financial Statements Ch PoB Money Management – refers to the day-to-day financial activities associated with using limited income.
1 SMALL BUSINESS MANAGEMENT Chapter 10 Financial Management.
Lecture 28. Chapter 17 Understanding the Principles of Accounting.
Introduction to Accounting. What is accounting? The system of recording and summarizing ______________ ___________and analyzing, verifying, and reporting.
© The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin 16-1 Reporting the Statement of Cash Flows Chapter 16.
Chart of Accounts. A list of accounts used by a business.
FINANCING. ENTREPRENEURIAL RESOURCES As a Business owner you must consider both the long term and short term capital needs for your company What are.
SMALL BUSINESS MANAGEMENT Chapter 6 Financing the Small Business Crowdfunding Cottage cheese cake Molly Maid Game Developer BrandMan Mia Yogurt.
Cash budgeting. What is a budget? An agreed plan of action for a period of time A financial plan shown in monetary terms Sets out financial.
The Financial Statements Chapter 1. Accounting is the information system that... measures business activities, processes data into reports, and communicates.
Accounting for a Service Business - Unit 1.6 Owner’s Equity.
Preparing Financial Documents The Income Statement & Balance Sheet.
PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved.
BASIC FINANCIAL STATEMENTS Chapter 2. Introduction to Financial Statements Companies prepare interim financial statements and annual financial statements.
Financial and Managerial Accounting John J. Wild Third Edition John J. Wild Third Edition McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies,
Financial Puzzle FINANCIAL STATEMENTS By PresenterMedia.com PresenterMedia.com.
Financial Management Glencoe Entrepreneurship: Building a Business Analyzing Your Finances Managing Your Finances 21.1 Section 21.2 Section 21.
1 STATEMENT OF CASH FLOWS. 2 The Primary Purpose of the Statement of Cash Flows Is... To provide information about: cash receipts, cash payments,
Week 5. Also known as an accounting period. It’s the period of time that business reports financial information. Business determines the length.
Accounts. Key Accounting Documents Public Limited Companies in the UK are required to publish their accounts This will usually consist of three key accounting.
© 2017 SlidePlayer.com Inc. All rights reserved.