©2013 cengage learning. all rights reserved. business management, 13e business financial records...
TRANSCRIPT
©2013 Cengage Learning. All Rights Reserved.
Business Management, 13e
Business Financial Records15.1 Types of Financial Records15.2 Budgets and Budgeting15.3 Financial Reports15.4 Analyzing Financial Data
CHAPTER
15
©2013 Cengage Learning. All Rights Reserved.
Business Management, 13e
CHAPTER 15
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15.1 Types of Financial Records
DLTs● Describe why businesses need to maintain
financial records.● Identify and discuss the purpose of several
types of business financial records.
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Business Management, 13e
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Financial Records
● Record-keeping systems● Accounting and data processing
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Business Management, 13e
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Types of Financial Records
● Cash records● Credit records● Depreciation records● Special asset records● Tax and payroll records● Protecting business records
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Business Management, 13e
CHAPTER 15
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15.2 Budgets and Budgeting
DLTs● Describe the uses of several types of business
budgets.● Discuss the reasons managers prepare more
than one budget estimate.
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Business Management, 13e
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Business Budgets
● Importance of budgets● Types of budgets
● Start-up budget● Operating budget● Cash budget● Capital budget● Sales budget
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Business Management, 13e
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Administering the Budget
● Prepare three budget estimates● Use budget to monitor● Make adjustment● Compare budgets to actual results
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Business Management, 13e
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15.3 Financial Reports
DLTs● Describe the contents and explain the purpose
of a balance sheet.● Describe the contents and explain the purpose
of an income statement.
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Business Management, 13e
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Financial Performance and Financial Conditions
● Keep thorough and accurate records● Prepare important financial reports regularly● Interpret the financial information in the
reports● Make decisions that will have a positive
influence on future financial results
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Business Management, 13e
CHAPTER 15
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The Balance Sheet
● Kinds of financial data● Value of balance sheet information
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Business Management, 13e
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The Income Statement
● Kinds of financial data● Value of income statement information
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Business Management, 13e
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CHAPTER 15
Analysis of Budgeted Income Statement
Cost of Goods Sold; 34.7%
Salaries and Wages; 19.5%Advertising/Promo-
tion; 7.9%
Depreciation Expense; 6.6%
Utilities; 6.6%
Supplies and Ma-terials; 6.1%
Miscellaneous Expenses; 1.4%
Net Profit, 17.3%
Total Operating Expenses, 48.1%
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©2013 Cengage Learning. All Rights Reserved.
Business Management, 13e
CHAPTER 15
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15.4 Analyzing Financial Data
DLTs● Describe several types of financial analysis
that help in the understanding of a business’s financial condition.
● Identify where business owners and managers can turn to get help with understanding and using financial information.
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Business Management, 13e
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Using Financial Information
● Cash flow● Working capital● Financial ratios
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Business Management, 13e
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CHAPTER 15
Cash Flow
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Business Management, 13e
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CHAPTER 15
Working Capital
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Business Management, 13e
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CHAPTER 15
Financial Ratios
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Sales
Net ProfitReturn on SalesShows how profitable a firm was for a specified period of time
Average Merchandise Inventory
Cost of Goods SoldInventory TurnoverShows whether the average monthly inventory might be too large or small
Current Liabilities
Current AssetsCurrent RatioShows whether a firm can meet its current debts comfortably
Owners’ Equity
Net ProfitReturn on Owners’ EquityShows whether the owners are making a fair return on their investment
Total Assets
Net ProfitReturn on InvestmentShows rate of return on the book value of everything owned in the business
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Business Management, 13e
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Sources of Financial Information
● Accountants● Bankers● Consultants● Government