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

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

3. 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

4. Technology Entrepreneurship Financial…Information Managerial…Information Operational…Information

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

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

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

8. Technology Entrepreneurship Financial Cash flows-Monthly Schedule

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

10. Technology Entrepreneurship Financial Time Value of Money

11. Technology Financial NPV and Discounted Cash Flows

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

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

14. 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

15. 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

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

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

18. 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?

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

20. Technology Entrepreneurship Good Night & Good Luck

21. Technology Entrepreneurship Intentionally BLANK