Page 128 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Manpreet Kaur, Lovely Professional University
Unit 9: Financial Considerations

Unit 9: Financial Considerations Notes

CONTENTS
Objectives

Introduction
9.1 Financial Statements
9.1.1 Balance Sheet

9.1.2 Income Statement
9.1.3 Cash Flow Statement
9.1.4 Profit and Loss Account

9.2 Managing Cash Flows
9.2.1 Analyzing Cash Flow
9.2.2 Improving Accounts Receivable

9.2.3 Improving Accounts Payable
9.2.4 Improving Inventory Management
9.3 Applications of Business Ratios
9.3.1 Importance of Business Ratios

9.3.2 Financial Ratios
9.4 Sources of Finance: Debt and Equity
9.4.1 Equity Financing

9.4.2 Debt Financing
9.5 Summary
9.6 Keywords

9.7 Review Questions
9.8 Further Readings

Objectives

After studying this unit, you will be able to:

Explain the financial statements
Discuss how to manage cash flows
Explain the procedure for preparation of projected financial statements
Discuss the applications of business ratios

Discuss the sources of finance

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