PART 1 Introduction to Managerial Finance CHAPTERS IN THIS PART 1 2 3 The Role and Environment of Managerial Finance Financial Statements and Analysis Cash Flow and Financial Planning INTEGRATIVE CASE 1: TRACK SOFTWARE, INC. CHAPTER 1 The Role and Environment of Managerial Finance INSTRUCTOR’S RESOURCES Overview This chapter introduces the student to the field of finance and explores career opportunities in both financial services and managerial finance. The three basic legal forms of business
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Facts However, in 2009 revenues declined to $4.5 million along with net cash flows from all activities declining in 2009 as well. Overall capital expenditures for the company have been continually increasing by 26% each year. Milton had planned on borrowing $20 million in the fourth quarter of 2010 from the credit markets. In 2010, current cash flow is expected to increase due to higher projections of revenue and cash collections from the business—and therefore selling and producing more products
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comment on the finances of business: 7 (d)Recommend potential investor for the investment decision: 8 (e)All possible Sources of finance for 500000 and best source 8 (f) Management of working capital: 10 Task 2: 11 (a)Preparations of a cash flow forecast and comment on budget and cash flow: 11 (b)Recommendation for managing cash flow: 12 Task 3: 12 (a)Assessment of projects by financial techniques: 12 (b) Recommendation from the above calculations and reason behind the choice: 13 Conclusions:
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using both the FCF and the net cash flow. We have used three options such as a. Timing option, b. Decision Tree Analysis, and c. Option to Wait (Black Scholes Model). |1. Timing Option | We have used Timing Option to calculate the NPV if the stocks were issued immediately. Here we consider FCF in the three methods. Here, we assume 30% probability for high demand, 40% for average and 30% for low demand. We calculated the net annual cash flow for each scenario and then calculated
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Analysis, hence useful in making decisions regarding profit-planning. - Estimating profitability is easier since it provides data for individual product profitability. - Aids management in controlling costs. Variable costing reflects direct and controllable costs that management could take into consideration for cost management. - Saves time and effort of allocating fixed manufacturing overhead to each product. Variable Costing uses fixed overhead as a lump sum, treats it as period cost, hence deducts
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Introduction Liquidity and profitability are two major elements for judging company day to day performance. Company has liquidity means it is able to pay off short term loan, and its cash flow is positive to ensure business running into a profitable future. How much cash that a business hold in stock is crucial for the business, it can indicate whether a company can continue without going concern problem. Working capital is subtractive between current assets and current liabilities, and it is helpful
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current assets were $25872 in 2011 and $31611 in 2010. Total current liabilities were $12028 in 2011 and $9327 in 2010. These values return a ratio of 2.15 in 2011 and 3.39 in 2010. Intel’s current ratio in 2010 indicates problems in working cash management or inefficiencies in the use of current assets or short-term financing. Another measure of a company’s financial strength is the quick ratio which uses current assets minus inventories, divided by current liabilities. In 2010, Intel’s
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An organization’s valuation can create very efficient planning and capital distribution making this an important step in the organization’s valuation. The short and long term investments of an organization affect the day to day decisions of management and it also affects the organization’s value. Because this affects the value of the organization it becomes extremely important to use appropriate and precise valuation methods in order to estimate business activities and or projects that can affect
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in order to provide what the consumers need. Therefore the four financial statements help maintain and create more business for the companies. These statements are income statement, statement of changes in equity, balance sheet and statement of cash flow. The income statement, which is also known to be the statement of earnings or order of operations, gets prepared first. It lists revenues and expenses and calculates the company's net income or net loss for a period of time.
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with Calgary hotel being considered for purchase Occupancy rates lower than benchmark hotels suggesting image management issues at existing properties Ethical and control issues within the current operations and the possible Calgary purchase Lack of independence in current board Opening a new warehouse to serve the Ontario and Quebec stores Lack of independence in current board Cash flow issues caused by need to repay loan to shareholder Succession planning Budgeting relating to offering new products
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