MGMT 3320 Lecture Notes - Lecture 1: Net Present Value, Gross Profit, Cash Flow

• School: University of Guelph
• Department: Management
• Course: MGMT 3320
• Professor: Thomas Manning

Document Summary

September 14, 2017: quantitative- analyze financial statements (income statement, balance sheet, Statement of cash flows, units of measurement!: ratios: (liquidity, profitability, turnover, solvency, s. w. o. t analysis: strength, weakness, opportunity, threats, budgets and forecasts, net present value analysis, the (cid:858) (cid:859) wo(cid:396)d: e(cid:374)siti(cid:448)e a(cid:374)alysis (cid:894)(cid:449)hat happe(cid:374)s if p(cid:396)edi(cid:272)tio(cid:374)s a(cid:396)e lo(cid:449)e(cid:396)/highe(cid:396)(cid:895, solve it! Need to increase cash flow by collecting overdue accounts, or reduce variable (cid:272)osts (cid:271)y (cid:1006)%, o(cid:396) i(cid:374)(cid:272)(cid:396)ease sales (cid:271)y (cid:862)(cid:1007)% i(cid:374) (cid:449)este(cid:396)(cid:374) ca(cid:374)ada(cid:863): write a memo! Positives: all decisions, all profits, taxed once as a person, simple entry/exit. Positives: split risk, still simple to set up, all money get paid out yearly. Negative: profit split, conflict over effort, personally liable, limited liability. Negative: not available to everyone, complex for filing. Negative: tax deferral, easier to raise capital (borrow, (cid:862)li(cid:373)ited(cid:863) lia(cid:271)ility f(cid:396)o(cid:373) o(cid:449)(cid:374)e(cid:396)s, annual costs. Financial issues: there is a wide (cid:448)a(cid:396)iety as to (cid:862)ho(cid:449) to assess a(cid:374) o(cid:396)ga(cid:374)izatio(cid:374)(cid:863)