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Chapter I FINANCIAL STATEMENTS
Cash Flow – Production Cycle (I) Changes in equity Changes in liabilities Taxes Interest Dividends Collection of credit sales Cash sales Credit sales Depreciation Production Investment Example Cash Accounts receivable Fixed assets Inventory
Cash Flow – Production Cycle (II) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Cash Flow – Production Cycle (III) ,[object Object],[object Object],[object Object]
Financial statements – Balance Sheet ,[object Object],[object Object],[object Object]
Financial statements – Balance Sheet Asset Liability Something valuable which a  business owns  or has the use of ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Something which is  owed to somebody else ,[object Object],[object Object],[object Object],The  money put into a business  by its owners is capital. Capital is money owned to the shareholders by the business ,[object Object]
Financial statements – Balance Sheet ,[object Object],ASSETS = LIABILITIES + EQUITY Cash Accounts Receivable Inventory Fixed Assets Accounts Payable Loans Owners’ equity Beginning balance 1/1/10 250 100 150 Initial purchases (140) 80 60 Sales 875 25 900 Wages (190) (190) Merchandise purchases (360) 30 20 (350) Other expenses (210) (210) Depreciation (15) (15) Interest payment (10) (10) Ending Balance 31/12/10 215 25 110 45 20 100 275
Financial statements – Balance Sheet ,[object Object],ASSETS = LIABILITIES + EQUITY Cash Accounts Receivable Inventory Fixed Assets Accounts Payable Loans Owners’ equity Beginning balance 1/1/10 500 100 400 Purchases (140) 80 60 Sales 200 800 1000 Wages (500) (500) Print & Paper (10) 30 370 (350) Other expenses (10) 200 (210) Depreciation (15) (15) Interest payment (10) (10) Ending Balance 31/12/10 30 800 110 45 570 100 315
Financial statements – Balance Sheet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Assets ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Balance Sheet
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Current Assets Financial statements – Balance Sheet
[object Object],[object Object],[object Object],[object Object],Non-Current Assets Financial statements – Balance Sheet
Liabilities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Balance Sheet
Shareholder’s Equity ,[object Object],[object Object],[object Object],Financial statements – Balance Sheet
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Income Statement
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Income Statement
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Income Statement
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Income Statement
Example of a  P&L statement of a newspaper
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Cash Flow
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Cash Flow
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Financial statements – Cash Flow

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Mmi finance 1

  • 1. Chapter I FINANCIAL STATEMENTS
  • 2. Cash Flow – Production Cycle (I) Changes in equity Changes in liabilities Taxes Interest Dividends Collection of credit sales Cash sales Credit sales Depreciation Production Investment Example Cash Accounts receivable Fixed assets Inventory
  • 3.
  • 4.
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Editor's Notes

  1. Which is the specific of a media company? The AP and the AR are very high, meaning company has a lot of money to receive and pay but the money comes with big delays and sometime never. As a result there are big debts to suppliers (print, paper, taxes) and a lot of money to receive from advertising and distribution.