Page 231 - Finance for Non-Financial Managers
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Index
212
B
Bus industry example, 151
Backlog of firm orders, 112–113
Business environment, 1–2
Bad debt allowance, 36 Built-in cost controls, 162, 163
Balance sheet Business planning
basic functions, 24–25, 27–28 long-term goals, 145–147
current assets, 34–39 needed for investment capital,
current liabilities, 41–45 196, 199
current ratio, 101–102 rationale for, 138–141
fixed assets, 39–40 short-term goals, 147–153
long-term liabilities, 45–46 strategic versus operational,
other assets, 41 141–143
overview, 31–33 strategy development, 145
owners’ equity, 46–49 vision and mission, 143–144
videotape analogy, 18–19
C
Bank debt. See also Debt; Loans
on cash flow statement, 95–96 Callability of bonds, 186
Capital expenditures, on cash
as current liability, 44–45
need to shop for, 173–174 flow statement, 93–94
traditional term loans, Capital stock, on balance sheet,
47. See also Stocks
181–182, 187
Bankruptcies, 13 Cash basis accounting, 25–26,
74–75
Banks, competition among,
173–174 Cash collections formulas, 89, 90
Cash cycle, 68
Benchmarks, 100
Bill of materials, 125, 126 Cash flow
Bonds, 186, 187, 188 collection periods and, 35–36
overview of cycle, 68–72
Borrowing. See Bank debt; Debt;
Loans profits versus, 67–68, 74,
76–81
Broadband Internet access, 113
Budgets Cash flow statement. See
Statement of cash flow
basic format, 155–156
cost forecasts, 160–162 Cash reserves, 34
defined, 4 Change, effects on company for-
tunes, 14
flexible, 166–169
importance of basic knowl- Chart of accounts, 20–23
Chief financial officer (CFO), 5
edge, 4
names for, 156–157 Clarity, as benefit of business
in operating plans, 153 planning, 140
revenue forecasts, 157–160 Collateral
review process, 162–166 accounts receivable as, 73,
variance reporting and analy- 177–178, 187
sis, 134–136, 167–171 inventory as, 180
