The Balance Sheet
The Income Statement
The Statement of Cash Flows
Ratio Analysis
Break-Even Analysis
100
provides an estimate of the company's value on a particular date.
What is the Balance Sheet?
100
another name for the income statement
What is Profit and Loss statement?
100
two options to creating this: 1) to develop a sales forecast and work down or 2) to set a profit target and work up
What is the projected income statement?
100
measures the financing supplied by the firm's owner against that supplied by its creditors (gauge of the company's debt)
What is the leverage ratio?
100
expenses that vary directly with changes in the volume of sales and production
What is variable expenses?
200
Consists of cash and items to be converted into cash within one year or within the normal operating cycle of the company.
What is Current Assets?
200
represents the total cost, including shipping, of the merchandise sold during the accounting period.
What is cost of goods sold?
200
claims against assets
What is Liabilities?
200
measures the number of times its average inventory is sold out or turned over during the accounting period
What is the average inventory turnover ratio?
200
the level of operation at which it neither earns a profit nor incurs a loss
What is the break-even point?
300
those acquired for long-term use in the business.
What is fixed assets?
300
Gross Profit / Net Sales Revenue
What is Gross Profit Margin?
300
shows the changes in the firm's working capital from the beginning of the year by listing both the sources of funds and the uses of those funds
What is the Statement of Cash Flows?
300
tells whether a small business will be able to meet its short term obligations as they come due
What is the liquidity ratio?
300
1 - (variable expenses / net sales estimate)
What is the contribution margin formula?
400
creditor's claims against the company.
What is liabilities?
400
those costs that contribute directly to the manufacture and distribution of goods
What is operating expenses?
400
Cash
What is the most useful Asset?
400
shows how effectively the firm uses its resources
What is the Operating ratio?
400
expenses that do not vary with changes in the volume of sales or production
What is fixed expenses?
500
the value of the owner's investment in the business.
What is Owner's equity?
500
compares expenses against revenue over a certain period of time to show the firm's net profit or loss
What is the income statement?
500
a pro-forma balance sheet outlining the fledgling's firm's assets and liabilities
What is the projected balance sheet?
500
indicates how efficiently a small company is being managed
What is the profitability ratio?
500
total fixed cost / contribution margin expressed as a percentage of sales
What is the Break-even formula?
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