Business Administration 3321K Study Guide - Final Guide: Business Cycle, Income Statement, Fixed Cost
22 Mar 2019
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Intro: role (always external, criteria (profitability, sustainability, etc. , alternatives (include status quo) External analysis: economy (real gdp, interest rates, business cycle, beta, ksf"s. Industry (pest, segmentation, power allocation, barriers to entry, substitute products) Internal analysis: marketing/demand risk (price elasticity, target market, product, promotion, place, operations/supply risk (quality, technology, facilities/capacity, inventory management, labor skill, management (growth stage, technical knowledge, personal investment, leadership skills) Acid test = (cash + account receivable)/(current liabilities) Working capital gap = days ar + days inventory days ap. Return on equity = (net income)/(common shareholder"s equity) E. i. (this period) = b. i (this period) + cogp - cogs. Analyze to see if important ratios changed favorably. Minimum breakeven: be units = (fixed costs)/(unit contribution $, be sales = (be units)*(sales price) Target profit b/e: target profit be units = (fc + target profit)/(unit contribution $, target profit be sales = (target profit be units)*(sales price) Margin of safety (projected sales b/e sales)/(projected sales)
