3.8 KiB
3.8 KiB
Section 6 | Lesson 34 - Balance Sheet, Cash Flow Statement
Links
Notes
tips
- confidence leads to perceived competence, especially in sales
- confidence is king
- in baseball you miss more often, so the best hitters are insanely confident
- when presenting to investors get into the confident state
financial analysis
- don't focus on memorization
- if you understand you will remember it
years 3-4
- growth is accelating
- running out of cash
copyright and trademarks
-
™️
- meaning: brand, logo, or phrase that is claimed but not yet registered with a government trademark office
- legal: limited protection, intent to claim but not the legal weight of a trademark
-
©️
- meaning: creator of a work owns the copyright
- legal: automatically granted as soon as work is created and fixed in a tangible medium. symbol serves as a public notice
- applies to creative works, not brand identifiers
-
®️
- meaning: officially registered with a government agency
- legal: strongest protection for brand, logo or phrase. allows the owner to sue for damages if someone infringes on the trademar
balance sheet
banks
- you shouldn't deal with banks early on
-
you want to deal with multiple banks
- best deal
- options
terms
- balance sheet: tracks everything you own or owe
- equity: what people own
- debt: what banks own
-
assets: what you own
-
current: stuff you can sell in less than one year
- equipment
-
long term: stuff you can't sell in less than one year
- factory
-
-
liabilities
-
current
- stuff you have to pay back in a year
- credit card
- payroll
- long term
-
Cash Flow
-
tells you about your income
- top line is sales / revenue
- bottom line is net income
Financial Summary
The following is a fictional summary of a the finances of a watch company
Gross Profit
| Category | Quantity | Per Unit | Total |
|---|---|---|---|
| Sales | 1000 | $300 | $300k |
| Cost | 1000 | $200 | -$200k |
| Gross Profit | $100k |
Earnings Before Interest and Taxes (EBIT)
| Expense Type | Amount |
|---|---|
| Marketing expenses | -$10k |
| Employee expenses | -$30k |
| Rent expense | -$17k |
| Depreciation | -$2k |
| EBIT | $41k |
Earnings Before Taxes (EBT)
| Item | Amount |
|---|---|
| Interest | -$1k |
| EBT | $40k |
Net Income
| Item | Amount |
|---|---|
| Taxes (25%) | -$10k |
| Net Income | $30k |
Explanation of the Financial Summary
- Gross profit: the monty you bring in taking away only the cost of manufacture
-
Earnings Before Interest and Taxes (EBIT) / Operating Profit
- this is also called "The Line"
- this composes operating expenses and depreciation
-
depreciation is the wear and tear on your equipment
- in the US you can deduct that cost
- this means you can deduct from the use of even a car