111 lines
3.8 KiB
Org Mode
111 lines
3.8 KiB
Org Mode
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#+title: Section 6 | Lesson 34 - Balance Sheet, Cash Flow Statement
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* Links
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- [[./../mba-main.org][<Back to Main MBA]]
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- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4311526#overview][S06:L34 Income Statement, Balance Sheet, Financial Risk]]
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- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/4311576#overview][S06:L35 Cash Flow Statement]]
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* Notes
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** tips
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- confidence leads to perceived competence, especially in sales
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- confidence is king
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- in baseball you miss more often, so the best hitters are insanely confident
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- when presenting to investors get into the confident state
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** financial analysis
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- don't focus on memorization
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- if you understand you will remember it
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*** years 3-4
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- growth is accelating
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- running out of cash
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** copyright and trademarks
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- ™️
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- meaning: brand, logo, or phrase that is claimed but not yet registered with a government trademark office
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- legal: limited protection, intent to claim but not the legal weight of a trademark
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- ©️
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- meaning: creator of a work owns the copyright
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- legal: automatically granted as soon as work is created and fixed in a tangible medium. symbol serves as a public notice
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- applies to creative works, not brand identifiers
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- ®️
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- meaning: officially registered with a government agency
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- legal: strongest protection for brand, logo or phrase. allows the owner to sue for damages if someone infringes on the trademar
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** balance sheet
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*** banks
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- you shouldn't deal with banks early on
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- you want to deal with multiple banks
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- best deal
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- options
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*** terms
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- balance sheet: tracks everything you own or owe
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- equity: what people own
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- debt: what banks own
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- assets: what you own
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- current: stuff you can sell in less than one year
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- equipment
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- long term: stuff you can't sell in less than one year
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- factory
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- liabilities
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- current
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- stuff you have to pay back in a year
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- credit card
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- payroll
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- long term
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** Cash Flow
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- tells you about your income
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- top line is sales / revenue
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- bottom line is net income
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*** Financial Summary
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The following is a fictional summary of a the finances of a watch company
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**** Gross Profit
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| Category | Quantity | Per Unit | Total |
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|----------------+----------+----------+--------|
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| Sales | 1000 | $300 | $300k |
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| Cost | 1000 | $200 | -$200k |
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| **Gross Profit** | | | **$100k** |
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**** Earnings Before Interest and Taxes (EBIT)
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| Expense Type | Amount |
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|------------------------------+----------|
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| Marketing expenses | -$10k |
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| Employee expenses | -$30k |
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| Rent expense | -$17k |
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| Depreciation | -$2k |
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| **EBIT** | **$41k** |
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**** Earnings Before Taxes (EBT)
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| Item | Amount |
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|-----------------+----------|
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| Interest | -$1k |
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| **EBT** | **$40k** |
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**** Net Income
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| Item | Amount |
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|-----------------+----------|
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| Taxes (25%) | -$10k |
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| **Net Income** | **$30k** |
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*** Explanation of the Financial Summary
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1. *Gross profit*: the monty you bring in taking away only the cost of manufacture
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2. *Earnings Before Interest and Taxes (EBIT) / Operating Profit*
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- this is also called "The Line"
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- this composes operating expenses and depreciation
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- depreciation is the wear and tear on your equipment
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- in the US you can deduct that cost
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- this means you can deduct from the use of even a car
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