创业金融课件2.pptx

Entrepreneurial Finance;There are three basic Financial Statements. ;Statement of Assets and Liabilities The Balance Sheet;The Income Statement;;An Example of a Balance Sheet(Horizontal Format);Equity share capital share premiums retained earnings ;The Balance Sheet;The relationship between risk and return;The Balance Sheet;The Balance Sheet;The Balance Sheet(Vertical Format);Problems arise from the differences in approach, and alternative methods used to value the different categories of assets and liabilities: ;Balance Sheet Issues;The Income Statement;The Income Statement;The Income Statement;The Income Statement;The profit (or loss) earned during an accounting period is not the same as the cash flow generated during the period. ;The statement of cash flows is directly related to both the income statement and the balance sheet, and the links between them may be quantified and reconciled. The preparation of the statement of cash flows is a highly objective exercise, in which all the headings and amounts are cash based and therefore easily measured. The cash flow generated during an accounting period is a matter of fact and does not rely on judgement or the use of alternative conventions or valuation methods. ;Cash Flow Statement;Cash Flow Statement;Cash Flow Statement;The main aims of a business performance review are to provide an understanding of the business and provide an interpretation of results. Care must be taken in reviewing business performance, primarily because of lack of consistency in definitions, and changes in economic conditions. ;An important area of business performance review is the use of ratio analysis looking at profitability efficiency liquidity investment growth financial structure ;Profitability Ratios;Profitability Ratios;return on investment (ROI) = operating profit _____ (pre-tax) or return on capital employed total assets – current liabilities