{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Financial_Lecture - Supply Chain Impact on Financial...

Info icon This preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Michigan State University, 2004 - 1 - M Michigan State University, 2008 Click to edit Master subtitle style l Michigan State University, 2008 Supply Chain Impact on Financial Performance
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Michigan State University, 2004 - 2 - M Michigan State University, 2008 THE BALANCE SHEET Current Assets (cash, accounts receivable, inventory, and other assets in varying states of being converted into cash within the next 12 months). Fixed Assets (equipment, vehicles, machinery, real estate, and other assets used in the operation of the business which are not intended for resale). Current Liabilities (notes payable, accounts payable, income taxes, and other debts owed by the business to be paid within the next 12 months). Long-Term Liabilities (mortgages and other debts owed by the business to be paid beyond the next 12 months). The Owner's claim on the assets of the business--that is, the owner's investment or equity. ASSET S LIABILITIE S NET WORTH (Owner’s Equity) BALANCE SHEET EQUATION: ASSETS = LIABILITIES + NET WORTH
Image of page 2
Michigan State University, 2004 - 3 - M Michigan State University, 2008 Income Statement SALES REVENUE LESS: COST OF GOODS SOLD = GROSS MARGIN LESS: EXPENSES = NET PROFIT (OR LOSS) BEFORE TAXES LESS: TAXES = NET PROFIT (OR LOSS) AFTER TAXES
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Michigan State University, 2004 - 4 - M Michigan State University, 2008 Strategic Profit Model Perspective The Strategic Profit (DuPont) Model Framework ROA as a Key Measure Understanding the Composition of ROA Net Profit Margin Asset Turnover ROA = Profit / Assets
Image of page 4
Michigan State University, 2004 - 5 - M Michigan State University, 2008 STRATEGIC PROFIT MODEL PROFIT MARGIN ASSET TURNOVER RETURN ON ASSETS % % TIME S profit net sales net sales total assets ( ) ) ( profit total assets
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Michigan State University, 2004 - 6 - M Michigan State University, 2008 SALES COST OF GOODS SOLD VARIABLE EXPENSES FIXED EXPENSES GROSS MARGIN TOTAL EXPENSES SALES PROFI T PROFIT MARGIN RETURN ON ASSETS $ $ $ $ $ $ $ $ % % TIME S t profit net sales - + - ÷ ( ) STRATEGIC PROFIT MODEL
Image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern