Business Administration 2257 Study Guide - Final Guide: Net Income, Gross Profit, Cash Flow

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Vicki Sweeney

Document Summary

Key success factor/what a company should do at the end highlight key success factors. Highlight what the company is doing well and poorly (given the external environment we have just analyzed) Likely what they do poor is what decision is about. Internal: cash flows: write the net income from last years i/s as the first item under operating, reverse any items from income statement that are non cash (add. Depreciation/amortization) or non-operating(sub gains & add losses: find cash from income, label all b/s items except cash as operating, finance, investing. Investing=i: for each item (except net fixed assets and r/i) take the difference between this and last year. Source (+: retained earnings yr1(last yrs b/s) + net income yr2(this yrs. I/s) x(dividends)= retained earnings yr2(this yrs b/s) {the diveidneds is (-) in f: net fixed assets- positive plug means purchased new assets. Purchase amnt will be (-)use. (i/s) depreciation (make sure not amort) (i/s) losses.