Day 4-Ch 3 and POW 1-9.12.11

Day 4-Ch 3 and POW 1-9.12.11 - Business Management 201 Day...

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Unformatted text preview: Business Management 201 Day 4 Chapter 3: Ratio Analysis POW #1: Bill and Skip September 12, 2011 Day 4 Agenda 1) TA POW Review Sessions Begin Tuesday & Thursday- Location TBD 2) Permanent Location for TA Open Review Sessions TBD 3) Book Assignments Made This Week 4) Reading Quiz Chapter 4-Due Wed 8:00 AM 5) Bring Calculators to Class 6) Jeopardy WednesdaySit Close to Front 7) Review Cash Flow Statement-Brents Books Exercise 8) Chapter 3 Discussion 9) POW #1: Bill and Skip Thoughts for the Day REPETITION of the same thought or physical action develops into a habit, which, repeated frequently enough, becomes an automatic reflex. ~Norman Vincent Peale, Protestant Clergyman REPETITION does not transform a lie into a truth. ~Franklin D. Roosevelt, 32 nd US President Constant REPETITION carries conviction. ~Robert Collier, Motivational Author Statement of Statement of Cash Flows Cash Flows Statement of Cash Flows CASH IS KING!!! Breaks Cash Flows into THREE Sources : 1) Operating: Arises naturally from business operations 2) Investing: PP&E, Land, LT Assets 3) Financing: BSD (i.e. B orrowing, S tock, D ividends) Cash Flow Analysis Source = Cash INCREASES (i.e. MORE cash so you ADD the change in value for CF Statement.) Balance Sheet Items : Liabilities: Assets: Equity: Use = Cash DECREASES (i.e. LESS cash so you SUBTRACT the change in value for CF Statement.) Balance Sheet Items : Liabilities: Assets: Equity: Statement of Cash Flows: Statement of Cash Flows: Make-a-Friend Exercise for Make-a-Friend Exercise for Brents Books Brents Books Statement of Cash Flows Cash flow from Operating Cash flow from Investing Cash flow from Financing Change in Cash + + = Make-a-Friend Exercise The 2010 Net Income for Brents Books was $14,525 . We need to analyze the information from the Balance sheet on the following slides to construct the Cash Flow statement for Brents Books. Assets: Liabilities & Owners' Equity: 2010 2009 2010 2009 Cash 19,000 15,000 Accts Pay 25,000 22,000 Accts. Rec. 34,000 28,000 Notes Pay 30,000 26,000 Inventories 27,000 24,000 Other CL 16,000 20,000 Total CA 80,000 67,000 Total CL 71,000 68,000 PP&E 368,000 350,000 LT Debt 80,000 65,000 Less A. Depr. 155,000 150,000 Total Liab 151,000 133,000 Net PP &E 213,000 200,000 Equity...
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Day 4-Ch 3 and POW 1-9.12.11 - Business Management 201 Day...

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