Business Administration 2257 Study Guide - Final Guide: Retained Earnings, Sensitivity Analysis, Cash Flow

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Impact on decision: competitor analysis talk about each one"s s&w and its impact on the decision. Impact on decision: corporate capabilities strengths and weaknesses. Impact on decision: competitive advantage goodwill, patent, relationship with suppliers, not being first in industry. Financial size up: statement of cash flows. Adjustment to cash basis: add back non-cash expenses (depreciation from is, add loss on sale, subtract gain on sale, changes in current assets/liabilities (non-financial includes unearned revenue, net cash flow from operations. Financing: check balance sheet for increases or decreases in loans, stocks or other personal investments (notes payable, mortgage/bonds payable, loans or stocks, due from sh, then reconstruct r/e) *-ve #s on left side, +ve #s on right side* Retained earnings/shareholders equity (this year"s) e/b: subtract dividends declared, net cash flow from financing activities. Investing (sofp: look at changes in non-current assets on the bs, only record land if there"s a difference b/w 2 years.