Technology Entrepreneurship Entrepreneurs and The Business of Accounting, Finance and Economics.

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Presentation transcript:

Technology Entrepreneurship Entrepreneurs and The Business of Accounting, Finance and Economics

Technology Entrepreneurship What About Your PRESENTATION…? Make Some Magic…!!!

Technology Entrepreneurship Ten Accounting Items 1. Revenue 2. Expense 3. Asset 4. Liability 5. Equity 6. Assets= Liab.+Equity 7. Rev – Exp = Income 8. Debits on the Left 9. Credits on the Right 10. Dr must equal Cr

Technology Entrepreneurship Financial…Information Managerial…Information Operational…Information

Technology Entrepreneurship Financial Financial Statements Cash Flow Statements Capital, Investments and Returns

Technology Entrepreneurship Financial Financial Statements…GAAP “Generally Accepted Accounting Principles” What about them???

Technology Entrepreneurship Financial Cash Flows Cash Balance… Cash - In Flows… Cash – Outlays… Ending Cash Balance

Technology Entrepreneurship Financial Cash flows-Monthly Schedule

Technology Entrepreneurship Financial Capital, Investments and Returns The Time Value of Money Present Value Discounted Cash Flows Cost of Capital

Technology Entrepreneurship Financial Time Value of Money

Technology Financial NPV and Discounted Cash Flows

Technology Entrepreneurship Cost of Capital Cash has a price… The Cost of Debt….. The Cost of Equity… Cost of Funds…???... Concept and Framework!!!

Technology Entrepreneurship Managerial Cost, Volume, Profit Analysis Contribution Margin Break Even

Technology Entrepreneurship Contribution Margin Statement Sales (400 units)….$100,000 ($250/unit) Less Var. Cost……..$(60,000) ($150/unit) Contribution Margin $40,000 $100/unit Less Fixed Cost….....$(35,000) Net Operating Inc……..$5,000

Technology Entrepreneurship Break Even In Units….. (CM per unit=CM/units sold) Q =TFC / CM per unit Q = $35,000 / $100 Q = 350 units sold

Technology Entrepreneurship Break Even In Dollars…. (CM Ratio=Sales/CM) $ = TFC / CM Ratio $ = $35,000 / 40% $ = $87,500 in Sales

Technology Entrepreneurship Target Profit of $20,000 In Dollars…. $ = Target Profit + TFC / CM Ratio $ = $20,000 + $35,000 / 40% $ = $137,500 in Sales

Technology Entrepreneurship Break Even…$0 profit $87,500 / $250 selling price 350 Units Target Profit of $20,000 $137,500 / $250 selling price 550 Units Can the class prove it?

Technology Entrepreneurship Operational Activity Based… Costing to Activity Based Funds Flow Design Production Quality

Technology Entrepreneurship Good Night & Good Luck

Technology Entrepreneurship Intentionally BLANK