How to Understand Business Finance, Second Edition_8 pptx

... puppets—or drinking. While the Vietnamese are usually happy to welcome foreigners into their bars and beer gardens, keep in mind that they have a number of drinking games. You’re in trouble when ... are now in a race with the challenger to drain your drink! Of course, as soon as you drain that one, several more Vietnamese will undoubtedly challenge you again. ● 3 PROTOCOL Greetin...

Ngày tải lên: 15/12/2013, 10:15

... outstanding costs 34 How to Understand Business Finance We start by adding up the assets of the business. There is £3,000 cash, £30,000 owed to us by customers, and no stock. This gives us total current ... goes on ‘customers 60 days’ according to the terms of the contract, as shown in Figure 2.15. 26 How to Understand Business Finance cash to pay for the equipment a...

Ngày tải lên: 20/06/2014, 20:20

... they have to do is have the stock manufactured to the 62 How to Understand Business Finance business it may be possible to go back to the owners and ask for more money (ie appeal to relatives). ... requirement will fi t into: a) Working Capital; that is to fi nance stock/raw material purchases or to provide the fi nance to allow customers to take extended credit...

Ngày tải lên: 20/06/2014, 20:20

... THIS PAGE IS INTENTIONALLY LEFT BLANK 98 How to Understand Business Finance Sales multiplier The sales multiplier uses a multiple of sales to assign a value to that company. This could be less than ... t multiplier, the multiplier used tends to be greater than 1 and will be based on how many years’ future profi t are to be factored into the value of a business as well a...

Ngày tải lên: 20/06/2014, 20:20

... be invested into, making a return for you. So, if we had £100 to invest today at a return of 30 per cent, Table 12.1 shows how we might expect it to grow in value if we continued to reinvest ... today’s money. 126 How to Understand Business Finance Or, if your prices come under pressure from competitors, how low can you let them go, and still make the profi t you want to...

Ngày tải lên: 20/06/2014, 20:20

... material stock and work in progress, as all their stock is now in fi nished goods. Debtors ‘Debtors’ refers to the amount of money owed to us by our customers. This is directly related to how long ... and used to carry on its business. Buildings and machines are usually fi xed assets, though not to the companies that make them. 148 How to Understand Business Finance mone...

Ngày tải lên: 20/06/2014, 20:20

... 152 How to Understand Business Finance It is only worth borrowing to expand a business if the internal return on investment (ORA or RONA) is expected to be signifi cantly higher ... costing inventory. See also FIFO. 158 How to Understand Business Finance payables’ days (US) See creditors’ days (UK). payback period The time needed for cash infl ows for a project to exc...

Ngày tải lên: 20/06/2014, 20:20

... much the same way. We will call it the business cycle. They produce and deliver a product or service, they invoice the customer, they pay their bills, they get paid by their customers, and they ... t, shown in Table 2.5. We have seen that cash and profi t are not the same, but do they change at the same time, and in the same way? Well, let’s look at the 25 The Business...

Ngày tải lên: 21/06/2014, 07:20

... take them. Selling assets Clearly, we do not want to sell assets which we will need to run the business in the future. However, there are other assets which could be sold to generate cash. If there ... out the door. In other words, most companies get their suppliers to fund their business to a greater or lesser degree. This is why the US convention is to have...

Ngày tải lên: 21/06/2014, 07:20

... because your bank manager is • not experienced enough to understand the nature of your business. The bank is helping you to refi nance because it wishes to • exit your industry sector. The bank ... in the future (hence the high share price), or perhaps the stock is overvalued for the current level of return. 86 How to Understand Business Finance conside...

Ngày tải lên: 21/06/2014, 07:20