Business Administration 2257 Study Guide - Final Guide: Cash Flow, Capital Asset, Issued Shares
25 Jun 2016
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Role, decision: options, financing (debt or equity), promotion (push or pull), goals. Scf analysis (operation, major sources and uses, matching) Ratio analysis (compare my ratio to industry or competitor) Use roa ifs company bought lots of fixed assets. Use roe if seeking potential investors and returns are important. Differential analysis (2 options), roi, payback (contribution, breakeven, cash budget analysis) Sales: existing sale (old sale*growth rate) + diff. sale. Cogs: existing cogs (% of sale) + diff. cogs. Operating x: existing (old x*growth rate) + diff. + financing. Long-term asset fa: old fa+new purchase; dep: old a/d+new. + source, - use (a/r, inventory, a/p, xx payable, prepaid) + source, - use (loan, stock, investment, advances to) This is mostly derived from ni, signifying a healthy and sustainable business model. Depreciation is another large source, make sense for a company with such large capital asset: other major sources and uses.
