Represents a snapshot of the financial position of a company on the last day of a given
Again this snapshot can be taken at any time, but is usually prepared monthly, quarterly
and annually at most firms.
R3 Erma. nancial SW6
0 0 m4: M. HSom
Q M05 gcc ~.; 0M 1E "
Total CA $7oo| TW Long-term debt 500 W
Net xed amen; soo| E | Toiai liabilities $580 53% +7 3:;
Total assets m | Common stock 420
| Retained earnings 200 L50 5
1 Total common equ. Jam
I Total |i
A report of revenues and all costs over a specified period of time.
Income statements can cover any period of time, but are usually prepared monthly,
quarterly and annually at most firms
- Forecast many items as a percentage of sales:
.03 : on I)
= -S 7
ne of credit
Total 05. $700| TlD B1. Long-term debt 500 60
Net xed assets soo| | Toial liabilities $580 53%
Total assets ml l'ZO 32. Common stock 420
Forecasted Financial Statements: The Basic Approach
- Forecast the operating items (e.g., sales, costs, inventory, etc.).
- Choose a preliminary nancial policy and use it to forecast the nancial items (e.g., long-term debt, interest expense, etc.).
Corporate Valuation and Financial Planning
Two main objectives in this chapter:
1. Learn how to project financial statements or pro forma financial
2. Learn how Free Cash Flow can help us estimate the value of a company
Lets start with a review
$ 20 Accts. pay. 3. accruals
Aocts. rec 280 | | Unit of credit
Inventories 400 |l Total CL $80
Total CA $700| I Long-term debt 500
Net xed amts 50 l Total liabilities $580
Total assets M | Common stock 420
l Retained earnings M
| | T
Value of Operations (Vop)
- The PV of expected future FCF, discounted at the WACC, is the value of a companys operations (Vop):
W E1 (1 + WACC)t
ou rces of Val
. Value of operations =- N 0 ah. W FCF;
. Marketable securitie
A quick desk reference for
faculty, staff, and students
Small campus. Big degrees!
WHAT TYPES OF SERVICES ARE AVAILABLE FROM THE OFFICE OF
COMMUNICATIONS AND MARKETING (OCM)?
The OCM is IUPUCs public rel
1. What is marketing?
2. How are markets analysed?
3. What product can I sell where
at what price?
4. Have my marketing measures
MARKETING includes all the activities
needed to direct the flow of goods and