Business Administration 1220E Lecture Notes - Lecture 1: Capital Requirement
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Business Administration 1220E Full Course Notes
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Analyzing the statement of cash flows: consider the following. Profitability vertical analysis = statement of earnings item. Working capital = current assets current liabilities. Net worth to total assets = total equity. Projecting financial statements: use management estimates and reasonable assumptions for psoe, psre, pbs. Interpreting the plug and risk analysis: consider the following. Assumption account value change in plug new plug. The 4 cs of credit: perform a risk assessment for capacity, collateral, character and conditions. Cr = total current assets + absolute value of plug (if negative) At = cash + ms + ar + absolute value of plug (if negative) Current liabilities excluding absolute value of plug (if negative) Decision: as ___________, i will draw on all important areas of analyses to support your decision.