10-1 Chapter Ten Financial Projections Bruce Barringer versity of Central Florida
10-1 Chapter Ten Financial Projections Dr. Bruce Barringer University of Central Florida.
Dec 13, 2015
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
10-1
Chapter Ten
Financial Projections
Dr. Bruce BarringerUniversity of Central Florida
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-2
Introduction
Sources and uses of funds statement Assumptions sheet Income statements Balance sheets Cash flows Ratio analysis
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-3
Sources and Uses of Funds Statement
The sources and use of funds statement is a document that lays out specifically how much money a firm needs, where the money will come from, and what the money will be used for
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-4
Assumptions Sheet
An assumptions sheet is an explanation of the most critical assumption that your financial statements are based on
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-5
Financial Statements
Income statement Balance sheet Cash flow statement
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-6
Income Statement
Net sales Cost of good
sold Operating
expenses
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-7
Net Sales
Net sales consists of total sales minus allowances for returned goods and discounts
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-8
Cost of Goods Sold
Cost of goods sold includes all the direct costs associated with producing or delivering a product or service, including the material costs and direct labor
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-9
Operating Expenses
Operating expenses include marketing, utilities, and administrative costs not directly related to producing a product or service
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-10
Balance Sheet
A balance sheet is a projection of a firm’s assets, liabilities, and owner’s equity at a specific point in time
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-11
Balance Sheet
Assets Current assets Fixed assets
Liabilities Current liabilities Long-term liabilities Owner’s equity
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-12
Cash Flow
Operating activities
Investing activities
Finance activities
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-13
Operating Activities
Operating activities include net income (or loss), depreciation, and changes in current assets and current liabilities other than cash
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-14
Investing Activities
Investing activities include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-15
Financing Activities
Financing activities include cash raised during the period by borrowing money, making payments on loans, or paying dividends
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-16
One Final Note
Demonstrate the ability to prepare financial statements
Break even analysis
Copyright © 2009 Pearson Education, Inc. publishing as Prentice Hall 10-17
Ratio Analysis
Profitability Ratios
Liquidity Ratios
Overall Financial Stability
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright ©2009 Pearson Education, Inc. publishing as Prentice Hall
Related Documents
