Business Administration 2257 Study Guide - Final Guide: Dont, Purch Group, Deferral

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Ian Dunn

Document Summary

Roi (total ncf/total investments: analysis of differential implications! (payback, roi, cash flow) Look at expenses pertaining to: breakeven analysis. Contribution margin rate= (sp-vc per unit) / sp. State whether financing with debt or equity (debt is always more favourable) Compare both options (push versus pull) *pull requires $ Projected balance sheet: estimate sales forecast (using sales growth ratio) As at 20 : estimate expenses using vertical analysis, case facts, past. Fixed assets (this yr purch. + last yr. purch) Projected balance sheet: enter items not expected to change from last balance sheet, retained earnings: last years r/e+ projected net income (or. Net loss) + planned additional invstment- any dividend/drawings: projected a/r= (projected credit sales/360) x days of a/r. Projected a/p= (projected purcheases/360) x days of a/p. Projected inv= (projected cogs/360) x days of inv: include planned fixed assets + amortization (from i/s, include planned debt financing. Tax (tax rate according to case look in footnote)