TMP 120 Lecture Notes - Lecture 14: Income Statement, Cash Flow Statement, Current Liability
Document Summary
Macpherson skate recommendations: face the facts: recognize that results have been less than needed, leadership skills: wallace is a great salesperson. Sales does not mean profitability: assume revenues will be flat. Introduce financial and operational discipline to improve gross margins, expense control, gaining the right cash cycle, using payment term benefits, etc : change business model: Address cash through inventory management, product line reduction, and related less expenses, ar term changes, ap prompt payment: no payment for wife as she is not working, no dividends. What do they want: pre-requisites for success. What do customers want: analysis of demand. How does the firm survive competition: analysis of competition. Basic assumption: sales growth drives costs & investments: forecast future sales. Income statement: tie other elements to sales forecast: Cogs, expenses, taxes, profit: balance sheet: consider assets & liabilities. Works well for variable costs, most current assets & current liabilities.
