BSM 200 Lecture Notes - Lecture 9: Commercial Paper, Income Statement

• School: Ryerson University
• Department: Business Essentials
• Course: BSM 200
• Professor: Ranjita Singh

Document Summary

Lecture 9: chpt 8 - finance: acquiring/using funds to maximize value. Cash (s. t liquidity // solvency survival of firm) Financing (source of fund) - debt: crrt liabilities. Other corp. - excess fund legitimacy. Retained earning (> = flex. use: account payable (bought on credit - payoff debt, s. t bank loan (high interest) i. ii. Crrt ratio = c. a / c. l = 1. C. a < c. l // owe ppl more (l : c. a > c. l // gd. recheck distr. of c. a (composition & terms) i. e credit sale not being received. // spending too much on inventory: note payable. Rate of return - satisfactory return on investment (peers // industry // most admired company [in country]) Budget income statement (pro-forma): forecasts sales, expenses, and net income. Cash budget: balance sheet (amt. need to carry out project) Investor"s analysis (predict) : prevent overrated, required strat/mkt (-50%) Net working capital - dif. between c. a n" c. l.