Page 232 - Finance for Non-Financial Managers

SicilianoIndex.qxd 2/10/2003 9:51 AM Page 213
Index
for revolving credit lines, 176,
cycle, 70
177
for term loans, 181 Credit, as stage of cash flow 213
Credit lines, 37, 175–177, 187
Collection periods Credits, debits versus, 27
in cash flow cycle, 71–72 Critical performance factors
days sales outstanding and, (CPFs)
103–104, 105 defined, 100
leveraging to company’s financial condition and net
advantage, 42, 43 worth measures, 101–105
variations, 35 financial leverage measures,
Common stock, 186–189. See 108–112
also Stocks importance, 99–100
Communication, benefits of busi- productivity measures,
ness planning for, 141 112–115
Competition, 1–2 profitability measures,
Computers, impact on business, 105–108
2–3, 29 trend reporting, 115–119
Conflicting objectives, 54 Cumulative shares, 190
Construction industry cash flow, Current assets, 34–39, 101–102
43 Current business environment,
Contributed capital, 47 1–2
Controllable costs, 130–132 Current liabilities, 41–45,
Conversion cost, 127 101–102
Convertible debt, 174, 185–186, Current ratio, 101–102
187, 188 Customer, sales per, 114–115
Convertible preferred stock, 191 Cutting budgets, 162–166
Corporation life cycles, 12–16
D
Cost accounting
Data collection tools, 125–126
controllable and uncontrollable Dating, 35
expenses, 130–132
Days sales outstanding, 103–104,
fixed and variable expenses, 105
128–130
Debentures, 186, 188
overview, 121–122 Debits, credits versus, 27
purposes, 122–127
Debt. See also Financing; Loans
standard costs, 132–136 on cash flow statement, 95–97
Cost-cutting, in budgets, 162–166
convertible, 174, 185–186,
Cost forecasts, 160–162
Cost of goods sold, 22, 78 187, 188
credit lines, 37, 175–177, 187
Cost of sales, 55–56, 57, 78. See
also Cost accounting as current liability, 44–45
leveraging for more profits, 70
Costs per sales dollar, 108
Covenants, 44–45 as long-term liability, 46