1. Final Exam Review Chapters 11 - 15 EBD-301 Accounting and Finance For Entrepreneurs

2. Chapter 11 Analysis, Forecasting, Control, BEP Analysis 3 major reasons why businesses fail. Objectives of Market Analysis; especially for small businesses. Objectives for Financial Planning Importance of Cash Budget Rationales for and factors in Breakeven Point Analysis

3. Chapter 12 Business Valuation Motives for valuing a [small] business 3 Methods for Valuing a small or new business Fair market value of assets Estimating Earnings Potential Discounted Cash Flow (DCF: WACC as opportunity proxy) What inputs are necessary for DCF? Are past comparable selling prices useful when valuing a business?

4. C HAPTER 13 F INANCING C HANGES IN S-T A SSET I NVESTMENTS Reasons for borrowing Sources of Short-Term Financing Spontaneous Planned Managing Working Capital; 3 strategies – implications of each Importance of Cash Conversion Cycle Forms of Trade Credit (financing inventory) What impacts do certain transactions have on the Current Ratio?

5. Chapter 14 F INANCIAL A NALYSIS OF B USINESS O PERATIONS Objectives of FA: Key areas of owner interest Five Major Ratio Categories and Objectives Liquidity (CR, QR) Asset management (DSO, ITO) Debt Management (DR, TIE) Profitability (GPM, OPM, NPM) Investment Performance (ROA, ROE) DuPont System: Objective, Focal Points NPM, TATO, EM ROE = ROA * EM

6. Chapter 15 Managing Bankruptcy and Insolvency Issues 4 Important Chapters Ch. 5: Rule of Absolute Priority – Satisfaction of Claims Ch. 7: Liquidation Ch. 11: Businesses Ch. 13: Individuals Definitions of Business Failure (bankruptcy) / Causes Definition of Insolvency / possible causes Conditions for Out-of-Court Remedies