Lecture+Chap2-1

Lecture Chap2-1 - Statements Lecture No.2 Chapter 2 Contemporary Engineering Economics Copyright 2006 ,4th edition.2007 1 Accounting The Basis of

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Contemporary Engineering Economics, 4 th   edition. ©2007 1 Understanding the Financial  Statements Lecture No.2 Chapter 2 Contemporary Engineering Economics Copyright ©2006
Background image of page 1

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

View Full DocumentRight Arrow Icon
Contemporary Engineering Economics, 4th  edition. ©2007 2 Understanding Financial Statements Accounting: The Basis of Decision- Making Financial Statements: Financial Status for Businesses Financial Ratios: Using Ratios to Make Business Decisions
Background image of page 2
Contemporary Engineering Economics, 4th  edition. ©2007 3 Chapter Opening Story – Dell Computer  Corporation 1983 – Michael Dell starts business of preformatting IBM PC HDs on weekends 1985 - $6 million sales, upgrading IBM compatibles for local businesses 1986 - $70 million sales; focus on assembling own line of PCs 1990 - $500 million sales with an extensive line of products 1996 – Dell goes online; $1 million per day in online sales; $5.3B in annula sales 1997 – Dell online sales at $3 million per day; 50% growth rate for third consecutive year, 7.8B in total annual sales 2005 - $49.2 B in sales How would you evaluate the financial performance of Dell Corporation?
Background image of page 3

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

View Full DocumentRight Arrow Icon
Contemporary Engineering Economics, 4th  edition. ©2007 4 A. Why Engineers need to understand the financial  statements?
Background image of page 4
Contemporary Engineering Economics, 4th  edition. ©2007 5 Accounting – The Language of Business
Background image of page 5

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

View Full DocumentRight Arrow Icon
Contemporary Engineering Economics, 4th  edition. ©2007 6 Financial Status for Business
Background image of page 6
Contemporary Engineering Economics, 4th  edition. ©2007 7 B. Understanding the Balance Sheet 1. The basic accounting equation and the definition of capital 2. How to instantly determine liquidity and too much debt 3. How the firm gets equity: only two ways
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/11/2010 for the course CEVE 322 taught by Professor Segner during the Spring '10 term at Rice.

Page1 / 27

Lecture Chap2-1 - Statements Lecture No.2 Chapter 2 Contemporary Engineering Economics Copyright 2006 ,4th edition.2007 1 Accounting The Basis of

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online