Financing the Enterprise

1
Financing the Enterprise

• Show Me the Money!!!

2
Accounting

• The recording, measuring and interpretation of
  financial information
• Internal Managerial
• Budget
• Cash flow
• External Business Performance
• Taxes
• Credit
• Investment

3
Double-Entry Bookkeeping

• Assets Liabilities Owners Equity

4
Ratio Analysis

• Calculations to measure the financial health of
  the organization
• Come from the Income Statement (Profitability)
  and the Balance Sheet (snap shot of what the
  organization owns and where the funds come from
  to pay for the assets of the company)

5
Industry Ratio Comparison

• Most industries have accepted performance
  standards against which the ratio analysis is
  compared
• You have 2 companies to analyse and the industry
  standards. In small groups or on your own,
  complete the analysis and check your answers. Be
  prepared to discuss any of this on Thursday!

6
Money!!! Functions

• Anything accepted in exchange for goods and
  services.
• Can be converted into any good
• Allows comparison of value, cost, income and
  profit
• Can be stored for future use

7
Money!!! Characteristics

• Acceptable
• Divisible into units
• Portable
• Stable
• Durable
• Hard to copy!

8
Why credit Cards?

• Why do you think that we use credit cards so much
  in Newfoundland and Labrador?
• What is the appeal of the debit card?