Business Administration 2257 Study Guide - Final Guide: Inventory Turnover, Fixed Asset, Retained Earnings

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Gomez Gomez

Document Summary

Promotional plan: financing, look at the statement of financial position (sofp) for any increase or decrease in the level of loans, stock, personal investment, reconstruct the retained earnings account (or. Owner"s equity account) to determine the level of dividends (or drawings): subtract dividends/drawings. = net sources of cash from financing: investment activities/ending cash. Steps: ending cash: add net cash flow from operations, cash flow from. Financing and cash flow from investments to the opening cash balance for the year (i. e. , last year"s ending balance from the sofp): this total should reconcile with the ending cash balance for. If a/r increases: sales increasing (look at i/s) or days increases (customers have power look at ratios) Ratio analysis: (use to answer questions posed by the scf analysis & look at industry) fit b/w qualitative & quantitative analysis, corrective action, reasons behind misfit. % of gross profit earned on sales ( margins ) Higher: means higher cut received on each sale.