One measure that is used extensively by lenders is EBITDA but it’s limitations and effective use are not always fully understood. This presentation shows how to calculate EBITDA and how to use it in credit analysis.
Presentation on vouching and verification for the benefit of B Com financial Audit students, topics covered are vouching of revenue items , verification and valuation of capital expenditure, receipts and valuation and verification of inventory
Objectives of the study :
1. To study the meaning, definition, and advantages of computerized accounting.
2. To study the comparison between Manual Accounting & Computerized Accounting System.
3. To know the accounting software Tally, it’s features and different versions.
4. To study the preparation of vouchers, steps, selections, types, altering, deleting of vouchers.
5. To understand the feeding of data and generation of report.
Limitations of Conventional Accounting (140517)Peter Burgess
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Throughput Accounting (Management Accounting and Finance)Kiran Hanjar
Throughput Accounting (TA) is a principle-based and simplified management accounting approach that provides managers with decision support information for enterprise profitability improvement
TA is relatively new in management accounting
It is an approach that identifies factors that limit an organization from reaching its goal, and then focuses on simple measures that drive behavior in key areas towards reaching organizational goals
Throughput Accounting is neither cost accounting nor costing
It is cash focused and does not allocate all costs (variable and fixed expenses, including overheads) to products and services sold or provided by an enterprise
This is the advanced cost management. How the cost influence in taking decisions.It comes under the field operations. Tells about what type of process or activity is required to produce a particular product in a manufacturing unit. There are many process to do a particular job and choosing the one which have the huge benefit depends on the advanced cost management
The aim of the presentation: in simple words with simple illustrations to introduce key concepts in financial reporting, used by telecom companies. (This version is in English)
Presentation on vouching and verification for the benefit of B Com financial Audit students, topics covered are vouching of revenue items , verification and valuation of capital expenditure, receipts and valuation and verification of inventory
Objectives of the study :
1. To study the meaning, definition, and advantages of computerized accounting.
2. To study the comparison between Manual Accounting & Computerized Accounting System.
3. To know the accounting software Tally, it’s features and different versions.
4. To study the preparation of vouchers, steps, selections, types, altering, deleting of vouchers.
5. To understand the feeding of data and generation of report.
Limitations of Conventional Accounting (140517)Peter Burgess
Conventional accounting is very powerful. It is at the center of the management information systems used by every well managed company on the planet. Yet conventional accounting has its limitations. This series of slides describes these limitations.
Throughput Accounting (Management Accounting and Finance)Kiran Hanjar
Throughput Accounting (TA) is a principle-based and simplified management accounting approach that provides managers with decision support information for enterprise profitability improvement
TA is relatively new in management accounting
It is an approach that identifies factors that limit an organization from reaching its goal, and then focuses on simple measures that drive behavior in key areas towards reaching organizational goals
Throughput Accounting is neither cost accounting nor costing
It is cash focused and does not allocate all costs (variable and fixed expenses, including overheads) to products and services sold or provided by an enterprise
This is the advanced cost management. How the cost influence in taking decisions.It comes under the field operations. Tells about what type of process or activity is required to produce a particular product in a manufacturing unit. There are many process to do a particular job and choosing the one which have the huge benefit depends on the advanced cost management
The aim of the presentation: in simple words with simple illustrations to introduce key concepts in financial reporting, used by telecom companies. (This version is in English)
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Use the GFB One page scorecard to help your Clients toEvaluate clients profitability cash and return on investment in a One page scorecard Where their key financial performance opportunities existInstantly know the impact of various decisions before you make themHow to convert financial statements in a real life management toolProduce effective financial diagnosticsCreate future projected financial statements and cash flowsCreate consulting revenues that is truly saleable
Use the GFB One page scorecard to help youEvaluate profitability cash and return on investment in a One page scorecard Educate you people on how decisions impact the income statement, Balance Sheet and Cash flow statementKnow the impact of price and volume decisions Know the difference between good and bad growthUnderstand whether you are making money from other people money (risk profiling)Discover where their key financial performance opportunities existInstantly know the impact of various decisions before you make themHow to convert financial statements in a real life management toolProduce effective financial diagnosticsCreate future projected financial statements and cash flowsCreate consulting revenues that is truly saleable
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The TELUS TV customer base has tripled over the last two years. To support this growth TELUS initiated a project to liberate data from their spatial data store for TELUS TV marketing, investment and provisioning. This project integrated TELUS corporate data with consumer tools. Consumer tools like Google Maps, Bing Maps and Open Source GIS provide TELUS with a plethora of functionality and data. Like any consumer product, it is not a panacea for corporate users. However, there is a lot of functionality that can be tailored to the needs of utility workflows. Come see specific workflows that show the benefit of mashing-up corporate GIS with Consumer GIS and how others are leveraging consumer GIS to increase their GIS Return on Investment!
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This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Financial statement analysis is the process of reviewing and evaluating a company's financial statements (such as the balance sheet or profit and loss statement), thereby gaining an understanding of the financial health of the company and enabling more effective decision making. Financial statements record financial data; however, this information must be evaluated through financial statement analysis to become more useful to investors, shareholders, managers and other interested parties.
Answer discussion question in your own words. Answer must be at l.docxrossskuddershamus
Answer discussion question in your own words. Answer must be at least one paragraph.
Class, one of my favorite advertising subjects is subliminal advertising. What do you think? Is it going on and we don't know it? Describe how you think subliminal perception could be used by marketers to the detriment of us consumers.
Question 2
The income statement of Rodriquez Company is shown below.
RODRIQUEZ COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 2012
Sales
$6,849,850
Cost of goods sold
Beginning inventory
$1,894,420
Purchases
4,331,190
Goods available for sale
6,225,610
Ending inventory
1,609,610
Cost of goods sold
4,616,000
Gross profit
2,233,850
Operating expenses
Selling expenses
450,650
Administrative expenses
700,340
1,150,990
Net income
$1,082,860
Additional information:
1.
Accounts receivable decreased $313,340 during the year.
2.
Prepaid expenses increased $166,770 during the year.
3.
Accounts payable to suppliers of merchandise decreased $281,430 during the year.
4.
Accrued expenses payable decreased $125,410 during the year.
5.
Administrative expenses include depreciation expense of $56,070.
Prepare the operating activities section of the statement of cash flows using the direct method.
RODRIQUEZ COMPANY
Statement of Cash Flows (Partial)
For the Year Ended December 31, 2012
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$313340
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$281430
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281430
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$
LINK TO TEXT
First Example—2011
To illustrate a statement of cash flows, we use the first year of operations for Tax Consultants Inc. The company started on January 1, 2011, when it issued 60,000 shares of $1 par value common stock for $60,000 cash. The company rented its office space, furniture, and equipment, and performed tax consulting services throughout the first year. The comparative balance sheets at the beginning and end of the year 2011 appear in Illustration 23.3.
ILLUSTRATION 23.3
Comparative Balance Sheets, Tax Consultants Inc., Year 1
Illustration 23.4 shows the income statement and additional information for Tax Consultants.
ILLUSTRATION 23.4
Income Statement, Tax Consultants Inc., Year 1
Step 1: Determine the Change in Cash
LEARNING OBJECTIVE 3
Differentiate between net income and net cash flow from operating activities.
To prepare a statement of cash flows, the first step is to determine the change in cash. This is a simple computation. Tax Consultants had no cash on hand at the beginning of the year 2011. It had $49,000 on hand at the end of 2011. Thus, cash changed (increased) in 2011 by $49,000.
Step 2: Determine Net Cash Flow From Operating Activities
To determine net cash flow from operating activities,
3
“Net cash flow from operating activities” is a generic .
8
Non-GAAPs Measures
Name:
Professor’s Name
Course Name:
Course/Registration No.:
Date:
Introduction/Purpose
Accounting and finance profession requires that the process or recording transaction and preparation of the financial statements be done with some standards that are generally outlined as GAAPs. The standards enables organizations, companies whether private or public and other institutions to be accurate and transparent in their preparation and recording of financial statements. In order to achieve transparency, accuracy and consistency in the predation of financial reports, GAAPs is used as the standard measure. GAAPs stand for generally accepted accounting principles. There is no universal standard that applies to all organizations in different geographical locations in the world. These standards normally differ from one country to the other. Generally accepted accounting principle is the bedrock for understanding of their financial performance of an institution whether public or private owned. GAAPs normally outlines the procedures and the scorecard for the preparation of financial reports and statements therefore when a particular company prepares its financial statements without employing the methodology outlined in GAAPs, then such a company is said to be using a Non-GAAP measure. Non-GAAP measure does not apply the standards stated as the generally accepted accounting principles. Non-GAAPs tries to explain the historical financial performance of a company and the projected and expected future performance of a particular company, the current financial position and the general cash flows.
A number of Non-GAAP measures that will be discussed herein include but not limited to EBITDA (Earnings before Interest and Tax, Depreciation and Amortization), Adjusted Earning, funds from operation (FFO), other cash earning (CE), free cash flows (FCF) and EBIT (Earnings before Interest and Tax). Other Non-GAAP measures include Net Operating Income (NOI), modified funds from operations (MFFO), Broad cash flow (BCF) and ROIC (Return on invested capital). Each of these non-GAAP measures have been explained below.
Earnings before Interest, Tax, Depreciation and Amortization is a type of Non-GAAP measure to determine the general operating performance of a company. Some of the merits of EBITDA include its ability to compare competitive firms in terms of their performance, it indicates a company’s efficiency and effectiveness regarding financial performance, gives the general outlook of business performance. EBITDA does not consider capital investments and other financial variables that may affect the financial position of the company. It only include expenses that are considered necessary in the day’s operation of the company. EBITDA gives an account of cash flows that might have been generated by the ongoing operations in the company. Some of the disadvantages of earnings before interest tax, depreciation and amortization include its f.
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Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
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2. Profitability can be
measured in a number
of ways.
In this presentation we
are talking about
EBITDA – what it is
and how it’s used.
3. A good place to start is by defining
what it means
So, its;
Earnings (that’s the same as profit)
Before (the deduction of)
Interest,
Tax,
Depreciation and
Amortisation
4. The first part of that definition
includes a profit measure called
EBIT.
If we take a look at an income
statement we can see what EBIT
is…….
5. Example Business Limited
Income Statements for the year ended 28 February
2013 2012
Turnover 32,076,796 28,161,327
Cost of goods sold (22,293,812) (19,283,781)
Gross profit 9,782,984 8,877,546
Operating expenses (6,896,393) (4,143,044)
Depreciation &
amortisation
(705,610) (607,658)
Operating profit/
(loss)
2,180,981 4,126,844
Interest expense (340,863) (522,759)
Net profit before tax 1,840,118 3,604,085
Tax (460,400) (867,448)
Profit for the year 1,379,718 2,736,637
On an income
statement, EBIT is
earnings (profit)
before interest and
tax
Effectively, it’s the
same as operating
profit but……..
6. …….it’s only the same as operating
profit if there are no exceptional items of
income or expenditure shown in the
income statement.
In our example on the previous slide
there isn’t, so it’s safe to take the
operating figure to be EBIT.
But if there were some exceptional
items, you’d have to calculate EBIT.
7. If you look again at the income
statement, you’ll notice that the
operating profit figure (what we
take to be the same as EBIT in
this case) is after the deduction of
depreciation and amortisation.
8. So to get to the EBITDA figure, we
simply have to add back that
figure for depreciation and
amortisation to the operating
profit.
9. Now we know how to calculate the
EBITDA figure, the question is
Why?
10. Having made the various
adjustments to operating profit,
what do we have?
We have the “cash” profits that the
business made from its operating
activity during the accounting
period.
11. Some lenders use this figure as a
proxy for cash flow since
depreciation and amortisation
have been removed.
The only thing to keep in mind if
you use it that way is that the
working capital changes have not
been taken into account. For
example………
12. The profit that we have
calculated as EBITDA will not
necessarily turn immediately
into cash.
If sales have been made on
credit, it’s only when the
customers actually pay the
business that the cash flow
occurs.
13. A much better way to use EBITDA
is as a comparison measure when
you are looking at a business’
performance compared to its
industry peers.
14. What that enables you to do is to
compare one business with
another but without the effects of;
• Different capital and funding
structures
• Different tax environments
• Different capex policies
15. Different capital and funding structures;
Businesses can fund themselves through
a mixture of equity and debt. Obviously,
the higher the use of debt, the more
interest the business will pay.
Removing interest expense from the
profit figures enables a better comparison
of operating performance between
different businesses.
16. Different tax structures;
Businesses that are geographically
diversified may have various tax
advantages and businesses that invest in
certain types of fixed assets may be able to
take advantages of tax shields, so
removing the tax paid figure enables a
better comparison of operating
performance between different businesses.
17. Different capex policies;
Businesses may regularly replace fixed
assets and so will have a higher
depreciation charge in their income
statements than those businesses that
don’t replace their assets so regularly.
18. Different capex policies;
Also, some businesses may invest in
intangible assets so will have a higher
amortisation charge in their income
statement than those businesses that don’t.
Removing the effects of depreciation and
amortisation enables a better comparison
of operating performance between different
businesses.
19. In summary, EBITDA is a very useful tool
for peer comparison of the real value of a
business’ profit from operations.
As a proxy for cash flow it has its uses also,
but for that purpose, analysis of the cash
flow statement is a better option.