ECN 204 Study Guide - Pro Forma, Net Income, Financial Statement
23 Apr 2014
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Document Summary
Financial planning: short term and long term. Surviving in the short term cash in the lifeblood of an entrepreneurial venture. Expected value: weighted average of a set of scenarios or possible outcomes. Forecasting for early stage ventures (firms that are in either their development, startup, or survival stage, or just entering into their rapid growth stage of their life cycle) Internally generated funds: net income or profits after taxes earned over an accounting period. Sustainable sales growth rate: rate at which a firm can grow sales based on the retention of profits in the business g = change in equity. Roe = net profit margin x asset turnover x equity multiplier. Financing capital needed (fcn): financial funds needed to acquire assets necessary to support a firm"s sales. Spontaneously generated funds: increases in accounts payables and accruals (wages and taxes) that occur with.
