This document discusses understanding the finance side of business. It explains that financial awareness is fundamental to business success and financial knowledge is important for everyone, not just accountants. It then covers common financial concepts like the different types of business entities, how businesses obtain and use money, accounting and bookkeeping, financial statements including balance sheets, profit and loss statements and cash flow statements. The document emphasizes the importance of cash flow and profitability versus liquidity. It also discusses budgets, measuring business performance, valuation, and provides some financial metrics as examples.
This document provides an overview of an accounting training workshop. It includes:
1) Objectives of helping participants understand key financial concepts and statements and make better business decisions.
2) An outline of course contents covering accounting principles, financial statement analysis, and key metrics.
3) Examples of accounting concepts discussed like the accounting equation, revenue and expense recognition, and the purpose of financial statements.
The document provides information about finance director services for entrepreneurial companies. It discusses understanding a company's current financial position, key business drivers, cash flow needs, and how to prepare basic financial statements like the balance sheet, profit and loss statement, and cash flow statement. It also covers topics like break even analysis, financial reporting, taxation, and financial modeling and forecasting. The document aims to help entrepreneurs and business owners better understand their company's financials.
Implement accounting procedures to track money flow and determine financial status. Cash flow is important for business success. Businesses need enough cash for expenses, payroll, and operations. While profitable, some businesses experience cash flow problems due to unreliable or inconsistent sources of cash flowing in and out. Cash flow statements help identify when cash is low and high, where cash is coming from and going, and how much cash is available.
Accounting and Valuation Considerations in Business TransactionsSkoda Minotti
Determining the value of a privately-held entity is no easy task. More so, when you are buying or selling a business, the entire transaction process can be overwhelming and confusing. There are many financial and non-financial factors to consider in the transaction process. The implications of an improperly executed transaction can not only make a financial impact, but also put you at risk of key compliance matters, whether accounting, tax, or regulatory matters. This presentation will review the key accounting and valuation concepts that are important to consider in merger and acquisition transactions.
This document provides an overview of financial analysis and key concepts used in financial statements. It discusses the primary uses of financial analysis to assess business performance, forecast financial requirements, and evaluate capital investment decisions. The key components of financial statements are described including the income statement, balance sheet, and statement of cash flows. Common financial metrics and ratios are outlined for evaluating operational performance, resource management, and profitability from the perspective of management, owners, lenders. Methods for evaluating capital investments such as return on investment, payback period, and discounted cash flow analysis are also summarized.
Part of the our current series of Professional Briefings for Owner/Managers of SMEs, the December briefing covered the "Dark art" of business valuation.
- Working capital management focuses on a company's current assets and current liabilities. It aims to optimize the amount of funds tied up in short-term assets to balance liquidity needs with reducing opportunity costs.
- Key components of working capital include cash, inventory, accounts receivable, and accounts payable. Companies must determine the optimal level of each based on their sales levels and growth strategies.
- There are three main approaches to working capital management: relaxed, moderate, and restricted. The cash conversion cycle model also examines how long it takes for a company to convert cash outflows on inventory into cash inflows from sales.
This document provides an overview of an accounting training workshop. It includes:
1) Objectives of helping participants understand key financial concepts and statements and make better business decisions.
2) An outline of course contents covering accounting principles, financial statement analysis, and key metrics.
3) Examples of accounting concepts discussed like the accounting equation, revenue and expense recognition, and the purpose of financial statements.
The document provides information about finance director services for entrepreneurial companies. It discusses understanding a company's current financial position, key business drivers, cash flow needs, and how to prepare basic financial statements like the balance sheet, profit and loss statement, and cash flow statement. It also covers topics like break even analysis, financial reporting, taxation, and financial modeling and forecasting. The document aims to help entrepreneurs and business owners better understand their company's financials.
Implement accounting procedures to track money flow and determine financial status. Cash flow is important for business success. Businesses need enough cash for expenses, payroll, and operations. While profitable, some businesses experience cash flow problems due to unreliable or inconsistent sources of cash flowing in and out. Cash flow statements help identify when cash is low and high, where cash is coming from and going, and how much cash is available.
Accounting and Valuation Considerations in Business TransactionsSkoda Minotti
Determining the value of a privately-held entity is no easy task. More so, when you are buying or selling a business, the entire transaction process can be overwhelming and confusing. There are many financial and non-financial factors to consider in the transaction process. The implications of an improperly executed transaction can not only make a financial impact, but also put you at risk of key compliance matters, whether accounting, tax, or regulatory matters. This presentation will review the key accounting and valuation concepts that are important to consider in merger and acquisition transactions.
This document provides an overview of financial analysis and key concepts used in financial statements. It discusses the primary uses of financial analysis to assess business performance, forecast financial requirements, and evaluate capital investment decisions. The key components of financial statements are described including the income statement, balance sheet, and statement of cash flows. Common financial metrics and ratios are outlined for evaluating operational performance, resource management, and profitability from the perspective of management, owners, lenders. Methods for evaluating capital investments such as return on investment, payback period, and discounted cash flow analysis are also summarized.
Part of the our current series of Professional Briefings for Owner/Managers of SMEs, the December briefing covered the "Dark art" of business valuation.
- Working capital management focuses on a company's current assets and current liabilities. It aims to optimize the amount of funds tied up in short-term assets to balance liquidity needs with reducing opportunity costs.
- Key components of working capital include cash, inventory, accounts receivable, and accounts payable. Companies must determine the optimal level of each based on their sales levels and growth strategies.
- There are three main approaches to working capital management: relaxed, moderate, and restricted. The cash conversion cycle model also examines how long it takes for a company to convert cash outflows on inventory into cash inflows from sales.
We know you’re a genius. You’re building a phenomenal company, one that may change the world, but you never took or don’t remember what you learned in that Accounting Class.
Often entrepreneurs drown in paperwork and receipts as they try to flush our their business plan. It’s important to keep your books straight from the beginning and keep track of the most important thing: the money. In this hands on workshop, we will take you back to basics, covering the fundamental metrics and financial accounting principles that will make or break your startup.
Expert:
Dan Allred – Silicon Valley Bank
www.thecapitalnetwork.org
CFO Insight For Business Owners: How to Utilize Financial StatementsChase R. Morrison
CFO Insight: This is a primer on how to use financial statements to more effectively operate a privately held business and was used to educate new entrepreneurs at the Valley Economic Development Corporation in Sherman Oaks, CA.
M6 L1 Financial Documents Used in a Small BusinessNCVPS
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
The document provides a basic primer on understanding financial statements for beginners. It explains the two key financial statements - the balance sheet and income statement. The balance sheet reflects a company's financial makeup and standing at a point in time, showing assets, liabilities, and net worth. The income statement reflects revenues and expenses for the current year to show net profit or loss. Net profit on the income statement flows to net worth on the balance sheet.
Basics of accounting_from_oracle_perspective level-imohamed atia
The document discusses fundamentals of accounting. It explains that accounting involves recording financial transactions, classifying them as assets, liabilities, revenues or expenses, and preparing financial statements. An example transaction of an employee receiving salary from their employer is used to illustrate accounting entries from the perspective of the individual, the employer company, and the bank. The key accounting concepts of entities, double-entry bookkeeping and classification of accounts are also introduced.
This document provides an overview of basic accounting level II. It discusses what accounting is, how to best learn accounting, the difference between accounting and finance, key accounting concepts and conventions, accounting events, rules of accounting, how to prepare financial statements, and provides a simple case study. The key topics covered include defining accounting as recording, classifying and summarizing financial transactions for preparing financial statements, emphasizing understanding concepts over rote learning of rules, and explaining common accounting concepts like business entity, money measurement, and accounting conventions like going concern and consistency.
Cash Flow Statement is a basic concept which every young manager must learn. This presentation excellently explains what you should know about this topic!
Bba 2204 fin mgt week 4 cashflow & financial planningStephen Ong
This document provides an overview of cash flow and financial planning. It discusses key concepts like depreciation, statements of cash flows, operating cash flow, free cash flow, and financial planning processes. The learning goals are to understand tax depreciation, statements of cash flows, and financial planning, including long-term strategic plans and short-term operating plans like cash budgets and pro forma financial statements. Examples are provided to illustrate concepts like depreciation calculations and developing statements of cash flows. Ethics examples consider appropriate CEO compensation and ways accountants could portray favorable earnings.
Accounting principles provide guidelines for how financial information should be recorded and reported. Some key principles include:
- The generally accepted accounting principles (GAAP) govern accounting rules and standards.
- Transactions must be recorded according to the accounting entity, historical cost, and accrual principles. Revenues and expenses must be matched and reported consistently and conservatively over time periods.
- Financial statements should be prepared under the assumption that the entity will continue operating as a going concern, using the local currency as the monetary unit of measure.
The document provides financial statement information for M/s R Company for 2004 and 2003, including balance sheets, income statements, and additional notes. It asks to prepare a statement of cash flows using the indirect method, noting equipment purchases and sales, bond redemptions, stock issuances, dividend payments, and other transactions during 2004.
This document discusses different methods for valuing goodwill of a business. Goodwill represents the excess of purchase price over the fair value of identifiable net assets of an acquired company. It is an intangible asset that arises in acquisitions. The document outlines the future maintainable profits method, super profits method, and number of years purchase method to calculate the value of goodwill. It also discusses concepts like capital employed, normal rate of return, weighted and simple average profits that are relevant for goodwill valuation.
So what’s the difference between revenue, profit and cash flow and why should you care?
This presentation will explain the difference between the these three, vital metrics that make up the foundation of your business. The slides also cover the dangers of having any of the three out of sync.
Quick Books Managing Your Business FinancesCheryl Blazej
This document from Blazej Accounting provides an overview of financial management essentials for small businesses. It covers topics like the importance of accounts, using financial reports to understand sales and cash flow, establishing a chart of accounts to categorize transactions, and choosing an accounting method. The document aims to help small business owners better manage their business finances.
The document discusses cash flow statements, defining cash flow as money moving in and out of a business over a period of time. It explains how cash flow is classified into operating, investing and financing activities and how companies can measure parameters like liquidity, profitability and risks using cash flow statements. The document also provides some common methods that companies use to augment their reported cash flows.
My1x1 Shop Trading Corporation is a direct selling company that sells health and wellness products. It provides business opportunities for individuals to become independent distributors and earn income through direct selling of products, sponsoring other distributors, and receiving bonuses and commissions from their sales networks. Distributors can earn through direct sales, sponsoring bonuses, matching bonuses, matrix cycling bonuses, multi-level line bonuses, retirement plans, and a unilevel sales pool. Becoming a distributor involves attending a business briefing, completing an application, purchasing a starter product package, and participating in training programs.
This document outlines the services provided by a firm to assist entrepreneurs, NRIs, and HNIs with business operations, finance, consultancy, and expansion. The firm's vision is to nurture entrepreneurial dreams and its mission is to deliver leading-edge services using its expertise. Services include advising on transactions, loans, deposits, investments, taxation, properties, and more. The firm also connects investors with investment opportunities in Indian companies and can represent or partner with other firms.
Enron was an energy trading company that collapsed in 2001 due to accounting fraud. It began lobbying for deregulation of the energy industry in the 1980s. Under CEO Jeff Skilling, Enron aggressively expanded its energy trading business. However, it hid investment losses by moving them to off-balance-sheet partnerships. When Enron's stock price declined due to investor uncertainty, it could not recover its losses and filed for bankruptcy in 2001. In response, the Sarbanes-Oxley Act of 2002 was passed to increase transparency and accountability in financial reporting.
This short document explains why following the author on Slideshare is pointless, as the author has nothing to say and would not try to fit any content into a PowerPoint presentation if they did have anything to share. The document ends by showing an image of a fictional hybrid animal called a zebroni or pebra to lighten the otherwise brief message.
Equidebt is a corporate advisory firm that provides end-to-end financial and business consulting services. Their vision is to support promising entrepreneurs through services like debt syndication, equity mobilization, finance studies, and business setup assistance. They have experience helping both domestic and international clients establish businesses in India. Equidebt aims to uphold high professional standards and deliver value to clients through a team of experts from various backgrounds, including chartered accountants, company secretaries, and medical professionals.
We know you’re a genius. You’re building a phenomenal company, one that may change the world, but you never took or don’t remember what you learned in that Accounting Class.
Often entrepreneurs drown in paperwork and receipts as they try to flush our their business plan. It’s important to keep your books straight from the beginning and keep track of the most important thing: the money. In this hands on workshop, we will take you back to basics, covering the fundamental metrics and financial accounting principles that will make or break your startup.
Expert:
Dan Allred – Silicon Valley Bank
www.thecapitalnetwork.org
CFO Insight For Business Owners: How to Utilize Financial StatementsChase R. Morrison
CFO Insight: This is a primer on how to use financial statements to more effectively operate a privately held business and was used to educate new entrepreneurs at the Valley Economic Development Corporation in Sherman Oaks, CA.
M6 L1 Financial Documents Used in a Small BusinessNCVPS
The document discusses key financial documents used in small businesses: the balance sheet, income statement, and statement of cash flows. It provides explanations of what each statement shows and the types of financial information included in them. The balance sheet presents a company's assets, liabilities, and owner's equity at a point in time. The income statement compares revenues and expenses over a period of time to determine profit/loss. The statement of cash flows tracks a company's cash inflows and outflows. Together these statements provide a comprehensive view of a company's financial health and performance.
The document provides a basic primer on understanding financial statements for beginners. It explains the two key financial statements - the balance sheet and income statement. The balance sheet reflects a company's financial makeup and standing at a point in time, showing assets, liabilities, and net worth. The income statement reflects revenues and expenses for the current year to show net profit or loss. Net profit on the income statement flows to net worth on the balance sheet.
Basics of accounting_from_oracle_perspective level-imohamed atia
The document discusses fundamentals of accounting. It explains that accounting involves recording financial transactions, classifying them as assets, liabilities, revenues or expenses, and preparing financial statements. An example transaction of an employee receiving salary from their employer is used to illustrate accounting entries from the perspective of the individual, the employer company, and the bank. The key accounting concepts of entities, double-entry bookkeeping and classification of accounts are also introduced.
This document provides an overview of basic accounting level II. It discusses what accounting is, how to best learn accounting, the difference between accounting and finance, key accounting concepts and conventions, accounting events, rules of accounting, how to prepare financial statements, and provides a simple case study. The key topics covered include defining accounting as recording, classifying and summarizing financial transactions for preparing financial statements, emphasizing understanding concepts over rote learning of rules, and explaining common accounting concepts like business entity, money measurement, and accounting conventions like going concern and consistency.
Cash Flow Statement is a basic concept which every young manager must learn. This presentation excellently explains what you should know about this topic!
Bba 2204 fin mgt week 4 cashflow & financial planningStephen Ong
This document provides an overview of cash flow and financial planning. It discusses key concepts like depreciation, statements of cash flows, operating cash flow, free cash flow, and financial planning processes. The learning goals are to understand tax depreciation, statements of cash flows, and financial planning, including long-term strategic plans and short-term operating plans like cash budgets and pro forma financial statements. Examples are provided to illustrate concepts like depreciation calculations and developing statements of cash flows. Ethics examples consider appropriate CEO compensation and ways accountants could portray favorable earnings.
Accounting principles provide guidelines for how financial information should be recorded and reported. Some key principles include:
- The generally accepted accounting principles (GAAP) govern accounting rules and standards.
- Transactions must be recorded according to the accounting entity, historical cost, and accrual principles. Revenues and expenses must be matched and reported consistently and conservatively over time periods.
- Financial statements should be prepared under the assumption that the entity will continue operating as a going concern, using the local currency as the monetary unit of measure.
The document provides financial statement information for M/s R Company for 2004 and 2003, including balance sheets, income statements, and additional notes. It asks to prepare a statement of cash flows using the indirect method, noting equipment purchases and sales, bond redemptions, stock issuances, dividend payments, and other transactions during 2004.
This document discusses different methods for valuing goodwill of a business. Goodwill represents the excess of purchase price over the fair value of identifiable net assets of an acquired company. It is an intangible asset that arises in acquisitions. The document outlines the future maintainable profits method, super profits method, and number of years purchase method to calculate the value of goodwill. It also discusses concepts like capital employed, normal rate of return, weighted and simple average profits that are relevant for goodwill valuation.
So what’s the difference between revenue, profit and cash flow and why should you care?
This presentation will explain the difference between the these three, vital metrics that make up the foundation of your business. The slides also cover the dangers of having any of the three out of sync.
Quick Books Managing Your Business FinancesCheryl Blazej
This document from Blazej Accounting provides an overview of financial management essentials for small businesses. It covers topics like the importance of accounts, using financial reports to understand sales and cash flow, establishing a chart of accounts to categorize transactions, and choosing an accounting method. The document aims to help small business owners better manage their business finances.
The document discusses cash flow statements, defining cash flow as money moving in and out of a business over a period of time. It explains how cash flow is classified into operating, investing and financing activities and how companies can measure parameters like liquidity, profitability and risks using cash flow statements. The document also provides some common methods that companies use to augment their reported cash flows.
My1x1 Shop Trading Corporation is a direct selling company that sells health and wellness products. It provides business opportunities for individuals to become independent distributors and earn income through direct selling of products, sponsoring other distributors, and receiving bonuses and commissions from their sales networks. Distributors can earn through direct sales, sponsoring bonuses, matching bonuses, matrix cycling bonuses, multi-level line bonuses, retirement plans, and a unilevel sales pool. Becoming a distributor involves attending a business briefing, completing an application, purchasing a starter product package, and participating in training programs.
This document outlines the services provided by a firm to assist entrepreneurs, NRIs, and HNIs with business operations, finance, consultancy, and expansion. The firm's vision is to nurture entrepreneurial dreams and its mission is to deliver leading-edge services using its expertise. Services include advising on transactions, loans, deposits, investments, taxation, properties, and more. The firm also connects investors with investment opportunities in Indian companies and can represent or partner with other firms.
Enron was an energy trading company that collapsed in 2001 due to accounting fraud. It began lobbying for deregulation of the energy industry in the 1980s. Under CEO Jeff Skilling, Enron aggressively expanded its energy trading business. However, it hid investment losses by moving them to off-balance-sheet partnerships. When Enron's stock price declined due to investor uncertainty, it could not recover its losses and filed for bankruptcy in 2001. In response, the Sarbanes-Oxley Act of 2002 was passed to increase transparency and accountability in financial reporting.
This short document explains why following the author on Slideshare is pointless, as the author has nothing to say and would not try to fit any content into a PowerPoint presentation if they did have anything to share. The document ends by showing an image of a fictional hybrid animal called a zebroni or pebra to lighten the otherwise brief message.
Equidebt is a corporate advisory firm that provides end-to-end financial and business consulting services. Their vision is to support promising entrepreneurs through services like debt syndication, equity mobilization, finance studies, and business setup assistance. They have experience helping both domestic and international clients establish businesses in India. Equidebt aims to uphold high professional standards and deliver value to clients through a team of experts from various backgrounds, including chartered accountants, company secretaries, and medical professionals.
The document provides tips for paraphrasing text, which involves restating information in one's own words while maintaining the original meaning. It recommends picturing the action to help paraphrase, breaking down long sentences, and simplifying the language. An example shows how to take lines of poetry and break them into smaller sentences before paraphrasing the ideas in simpler terms. The key aspects of a paraphrase are keeping the original meaning while using simpler language and one's own words.
Cultural historical context presentation 2Bulldog4
Cultural context refers to the behaviors, ideas, and beliefs shared by individuals within a particular group based on attributes like age, ethnicity, or social standing. Historical context means the setting of a work in a specific time period and place. To determine the cultural and historical context, one should use prior background knowledge, relate own experiences, and utilize any notes or references provided in the text. Understanding the cultural and historical context allows the reader to better connect with the story.
Garuda Pancasila adalah lambang negara Indonesia sesuai UUD 1945 dan UU No. 24/2009. Lambang ini melambangkan persatuan dan keragaman bangsa Indonesia dengan semboyan Bhinneka Tunggal Ika. Unsur-unsur Garuda Pancasila seperti jumlah bulu dan angka-angka memiliki makna sejarah.
Petunjuk Teknis Pendampingan dan Pelaksanaan Kurikulum 2013 di SMPIWAN SUKMA NURICHT
Dokumen tersebut merupakan petunjuk teknis pelaksanaan pendampingan kurikulum 2013 di SMP oleh Kementerian Pendidikan dan Kebudayaan. Dokumen ini menjelaskan latar belakang, tujuan, sasaran, konsep, strategi, dan mekanisme pelaksanaan pendampingan untuk memastikan pelaksanaan kurikulum 2013 di SMP dapat berjalan dengan baik.
Latihan Soal Ujian Sekolah PKN SMP Kelas IX 2015 pkn smpIWAN SUKMA NURICHT
Dokumen tersebut berisi soal-soal ujian sekolah mata pelajaran Pendidikan Kewarganegaraan untuk kelas IX SMP tahun 2015. Soal-soal tersebut meliputi berbagai aspek PKn seperti Pancasila, UUD 1945, demokrasi, hak asasi manusia, dan dampak globalisasi. Secara keseluruhan dokumen tersebut berisi 40 soal pilihan ganda mengenai berbagai konsep dasar dalam mata pelajaran PKn.
DRAFT PERBAIKAN KOMPETENSI DASAR PPKN DARI SD SAMPAI SENGAN SMAIWAN SUKMA NURICHT
Draft revisi kurikulum Pendidikan Pancasila dan Kewarganegaraan tahun 2013 memuat kompetensi inti dan kompetensi dasar untuk kelas I sampai IV SD yang berfokus pada pengenalan nilai-nilai Pancasila, hak dan kewajiban warga, serta keberagaman dan persatuan di masyarakat.
This document discusses China and Japan's imports of liquefied natural gas (LNG) from various countries and companies. It lists over 50 LNG export deals between suppliers like Australia, Qatar, the US and buyers like Sinopec, CNOOC, PetroChina and various Japanese utilities. It also briefly touches on conditions for developing an oil or natural gas futures market in China, including using renminbi in international trade, improving import infrastructure and the popularity of non-delivery vs delivery contracts.
2012 Skills Based Summit - 3M, Understanding Cash Flow & Long Term Financial ...HOTC19
This document discusses cash flow and long term financial metrics. It begins by explaining why cash flow is important for ensuring a company's long-term viability and ability to make strategic investments. It then covers the statement of cash flows and its three sections - operating, investing, and financing activities. Finally, it discusses free cash flow and how companies can use it, as well as examples of long term financial metrics that can help companies assess whether they are achieving their strategic goals.
The document defines a cash flow statement and explains its purpose and categories. A cash flow statement shows the inflows and outflows of cash from operating, investing, and financing activities over a period of time. Operating activities include cash from sales and payments for purchases and expenses. Investing activities consist of cash from the sale or purchase of long-term assets. Financing activities include cash from issuing shares or borrowing and cash used for repaying debt or paying dividends. The document also discusses the limitations of cash flow statements and provides an example income statement and balance sheet.
The cash flow statement summarizes the inflows and outflows of cash and cash equivalents over a period of time. It has three sections - operating, investing, and financing activities. The operating section deals with cash from core business operations. The investing section includes cash from the purchase and sale of long-term assets. The financing section includes cash from activities related to changes in a company's capital structure and borrowing arrangements.
This document discusses the concept of revenue in accounting. It defines revenue as the gross income received from normal business activities before expenses are deducted. Revenue arises from the sale of goods or services and is measured in monetary terms. The document outlines the key principles of revenue recognition and matching revenues with related expenses. It also discusses the differences between recording revenue for service companies versus merchandising companies.
This chapter introduces key concepts in accounting and business. It describes the main types of businesses, forms of business organization, and how businesses make money. The three main business activities are financing, investing, and operating. Accounting is defined as an information system that provides financial reports to stakeholders about a business's economic activities and condition. The four basic financial statements are the income statement, retained earnings statement, balance sheet, and statement of cash flows. Eight important accounting concepts that underlie financial reporting are also outlined.
This document provides an overview of basic financial statements including the balance sheet, income statement, statement of retained earnings, and statement of cash flows. It explains the purpose and key components of each statement. The balance sheet presents a company's assets, liabilities, and equity on a given date. The income statement shows revenues and expenses over a period of time. The statement of retained earnings tracks changes in retained earnings. The statement of cash flows reports cash inflows and outflows from operating, investing, and financing activities. Notes to the financial statements provide additional important information.
Casper Van Leeuwen - Why cash flow should be a focal pointFDMagazine
This document discusses why cash flow should be the focal point of financial consolidation and reporting. It argues that traditional financial statements do not provide easy insights into value creation. The balance sheet mixes operating and non-operating items, and the income statement combines profits and non-profits. To analyze economic performance, the statements need to be reorganized. The document demonstrates reorganizing the balance sheet to the "capital employed" format, which separates operating, investing, and financing activities and clearly defines working capital and net debt. This integrated view of the financial statements through the lens of cash flow and capital employed better reveals how value is being created.
The document provides an introduction to analyzing basic financial statements, including the cash flow statement, income statement, and balance sheet. It outlines the key components and metrics of each statement and discusses how to interpret various elements to analyze a company's profitability, liquidity, debt obligations, and overall financial health. The document is meant to serve as an overview for understanding and using financial statements to evaluate a business.
Bizness Branding Academy Presents The Financial Puzzle: Fitting the Pieces To...Lady Bizness
The document discusses key financial statements that provide information on a business's financial health and performance. It summarizes the income statement, balance sheet, and cash flow statement. The income statement shows revenues and expenses over a period of time. The balance sheet outlines a business's assets, liabilities, and equity. The cash flow statement reports cash inflows and outflows from operating, investing, and financing activities. Understanding these financial statements is important for business planning, monitoring finances, and identifying issues that could lead to business failure if not addressed.
Accounting provides comparable, reliable financial information to both internal and external users through identifying, recording, and communicating a company's transactions and financial position. It uses standards like GAAP and IFRS and principles such as historical cost and fair value. The basic accounting equation is Assets = Liabilities + Shareholders' Equity, and every transaction has a dual effect. Financial statements like the balance sheet, income statement, and statement of cash flows are produced and there are career opportunities in fields like public, private, and governmental accounting.
The document summarizes the key components and purpose of a cash flow statement. It discusses that a cash flow statement provides information about cash inflows and outflows from operating, investing, and financing activities over a period of time. It also describes how to prepare a cash flow statement using both the direct and indirect method and the differences between the two. The objectives, limitations, and distinction between a cash flow statement and funds flow statement are also outlined.
The document discusses key financial concepts such as balance sheets, income statements, assets, liabilities, working capital, and depreciation. It explains that a balance sheet records a business's assets and liabilities on a given date, and must always balance. It also discusses how to interpret balance sheets and income statements to analyze a business's short-term and long-term financial positions. Key metrics like working capital, depreciation, and different types of profit are defined. The document aims to explain how to analyze and use financial data for decision making and performance evaluation.
The document discusses how to analyze balance sheets and income statements to understand a business's financial objectives and performance, examining assets, liabilities, revenues, expenses, profits, and using financial data for comparisons over time and between businesses. It also notes some strengths and limitations of relying solely on financial statements to judge a business.
This document provides an introduction to key financial concepts including financial statements, cash flows, and taxes. It is presented in three sections. Section I discusses financial statements such as the balance sheet and income statement. Section II covers the statement of cash flows and uses and limitations of financial statements. Section III explores free cash flow, MVA, EVA, and income taxes for both individuals and corporations. The presentation aims to equip attendees with an understanding of these important financial management topics.
How to Manage working Capital in Hotel-Basic accounting principles #9 by Din...DINOLEONANDRI
The document discusses managing working capital in hotel industries. It defines working capital as the short-term assets used to fund daily operations, such as cash, receivables, and inventory. It also discusses the cash conversion cycle where cash is used to purchase inventory, turned into receivables through sales, and then collected as cash. Managing working capital involves balancing current assets and liabilities to ensure sufficient short-term funds and liquidity. The goal is to efficiently manage resources and improve cash flow.
Key person protection is important for business continuity and to protect against financial loss in the event a key person dies or becomes critically ill. It helps minimize business interruption, ensures loan obligations are met, and protects startups and management buyouts that rely heavily on certain skills and relationships.
The document provides information on various financial statements and analysis tools used by managers and analysts. It discusses balance sheets, income statements, cash flow analysis, ratio analysis, and the DuPont model. It explains how accounting profits differ from cash flows and how to translate profits into cash flows. Key measures of cash flow like cash flow from operations, operating cash flow, and free cash flow are also covered.
Alternative Methods For Valuing Customer Relationships(11.15.12)pjpatel
Ed Hamilton and P.J. Patel are experts on valuing customer relationships for financial reporting. They will discuss alternative valuation methods including the multi-period excess earnings method, distributor method, and cost approach. Case studies will examine applying these methods to acquired companies with established customer bases. The appropriate valuation method depends on factors such as whether customers are the primary asset and assumptions needed.
Similar to PowergridUnderstanding the Finance side of business (20)
3. • Financial awareness is fundamental to business success
• Financial knowledge is not just for accountants – it’s for
everyone
A survey found that 8 out of every 10 owners are trying to manage their
business without having the financial side under control. That's a
recipe for disaster! by Philip Campbell, CPA
6. ...understanding the finance side of business means the
ability to understand the impact of every decision you
make on the organization’s profitability...
9. How Business Gets Money?
“Never spend your money before you have earned it”
– Thomas Jefferson, Past president of USA
10. How Business Uses Money?
Buy
Current
Fixed Investments Deposits
assets
Assets
11. Recording – Accounting
and book keeping
People want to learn about finance because they want to know
what accountants are talking about – anonymous
15. Balance Sheet
Is one of the key financial
statements and is a
snapshot of the financial
What a What a
position of a business at a business business
owns owes
point in time
16. Profit & Loss Account
Why Profit and Loss
account made?
What Does it contain?
What is top line and
bottom line?
“Top line is merely a means towards achieving an end, and the end is to have healthy
bottom line.”
17. Cash Flow Statements
Profit does
not mean
Cash Profits
Cash flow Accounts are
from prepared on
financing matching
activities concept
Cash flow
Statement
Cash flow Cash flow
from from
investing operating
activities activities
18. Cash Flow Statement Example
Cash Flow from Operating activities
Profit for the period 8500
Adjustments for timing differences -1650
Interest and taxes paid -3250
3600
19. Cash Flow Statement Example
Cash Flow from Operating activities
Profit for the period 8500
Adjustments for timing differences -1650
Interest and taxes paid -3250
3600
Cash flow from investing activities
Purchase of property -9450
Proceeds from sale of equipments 2250
Interest and dividends received 900
-6300
20. Cash Flow Statement Example
Cash Flow from Operating activities
Profit for the period 8500
Adjustments for timing differences -1650
Interest and taxes paid -3250
3600
Cash flow from investing activities
Purchase of property -9450
Proceeds from sale of equipments 2250
Interest and dividends received 900
-6300
Cash flows from financing activities
Proceeds from issue of share capital 1500
Proceeds from long-term borrowings 7500
Dividends paid -3000
6000
21. Cash Flow Statement Example
Cash Flow from Operating activities
Profit for the period 8500
Adjustments for timing differences -1650
Interest and taxes paid -3250
3600
Cash flow from investing activities
Purchase of property -9450
Proceeds from sale of equipments 2250
Interest and dividends received 900
-6300
Cash flows from financing activities
Proceeds from issue of share capital 1500
Proceeds from long-term borrowings 7500
Dividends paid -3000
6000
Net Increase in cash and cash equivalents 3300
Cash at the beginning of period 6450
Cash and cash equivalents 9750
22. Why the difference arises between profits and cash
profits?
• Depreciation
• Amortization
23. Accounting Standards and Regulations
Generally
Accepted
Indian Accounting
Accounting Practice
Standards [GAAP]
International
Financial Audits
Reporting
Standards
[IFRS]
24. Who Uses Financial Statements
• Shareholders
• Financial analysts, advisers and
Advisors & journalists
Analysts • Credit Rating Agencies
• Local Tax authorities
• Governments
Officials & • Providers of finance, such as banks
Government
• Suppliers
• Customers
• Managers
Stakeholders • Employees
25. Making Profits
If a man goes into business with only the idea of making money, the chances are he won’t
-By Joyce Clyde Hall, founder of Hallmark Cards
26. Costs
• Direct Cost
• Indirect Cost
Cost behaviour
• fixed and variable costs
• semi variable costs
31. Break Even point
• Contribution = Revenue
– Variable Costs
• Profit = Contribution –
fixed Costs
32. How to manage Profits
Maintain Service
Increase Sales Volume Quality
Increase In Price Manage Interest
Costs
Improve Keeping Current
Margins/Contribution
Reduce Fixed Changing Business
Costs Needs
33. Be aware [beware] of Taxes
„of two things you can be certain; death
and taxes‟
-By Benjamin Franklin,
American Philosopher
34. Taxes
Tax Classes
Income or Corporate Tax
Employment or Payroll Tax
Capital Gain Tax
Value Added Tax
Excise Duty and Customs Duty
Service Tax
Professional Tax
Entry Tax
36. Cash Is King...
The most common reason that businesses fail is not through lack of
profit but through lack of cash
Key Aspects
• Profitability Vs Liquidity
• Cash is like oxygen
• Ideal goals
41. Measuring Business Performance
• Measuring Return –
Gross Profit Ratio = Gross Profit/Revenue * 100%
Net Profit Ratio = Net Profit/Revenue * 100%
• Measuring Investment
Asset turnover = Annual Revenue / Capital employed;
• Measuring Liquidity
Current Ratio = current assets / current liabilities
• Measuring Long term solvency
The debt equity Ratio
Interest Cover = Operating profit / Finance expenses
Investor Ratios
Earnings Per Share = Earnings available for distribution/Number of shares in issue
43. Business Valuation
Discounted cash • Present value of estimated
flow future cash flows
[DCF]
Income multiples • Income * Multiple
Asset based
valuations • Net Asset Value
44.
45. A few financial flashpoints…
Turnover
Turnover Rs. In Lacs
861,176
712,745
2010 2011
46. Segment-wise revenue
Rs. In Lacs
100%
98%
96% Short Term Total Access
94% Telecom Income
92% Consultancy Income
Transmission Income
90%
88%
86%
2010 2011
47. Number of Employees
Number Of Employees
Number Of Employees
9162
8214
7427 7645
2006-07 2007-08 2008-09 2009-10