Page 233 - Finance for Non-Financial Managers

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Index
214
Debt (Continued)
long-term types, 181–185
Investment capital
short-term types, 175–181 Entrepreneurs, 194. See also
EPS. See Earnings per share
uncollectible, 36 Equipment and furnishings
Debt-to-equity ratio, 108–110 on balance sheet, 39–40
Deficit in retained earnings, purchasing or leasing,
48–49 182–184, 187
Departments, organizing opera- recording purchase on cash
tional plans by, 148–149 flow statements, 93–94
Deposits, as other assets, 41 recording purchase on income
Depreciation statement, 79–80
adding back on cash flow recording sale on income
statement, 89 statement, 62
options, 9 Equity. See Stockholders’ equity
purpose of, 40, 80 Expenses
Dilution, 64–65, 188, 189 budgeting for, 160–162
Direct labor, 127 prepaid, 38–39, 80, 90–91
Direct materials, 127 when recorded, 52–54
Direct method, for statement of Experience, advantages of, 2–3
cash flow, 85–86, 87 Extraordinary items, 62
Diversity of work experience, 2–3 F
Dividends
on preferred stock, 190, 191 Factoring, 178–180, 187
Fast-growing companies, cash
reporting, 96, 97
DSL service, 113 flow challenges, 67–74
Finance. See also Accounting
E Finance Department functions,
Earnings before interest, taxes, 5–6, 9–10
depreciation, and amortization Finance knowledge, 3–4
(EBITDA), 61, 110–111 Financial accounting. See
Earnings per share IEPS) Accounting
dilution, 64–65, 188, 189 Financial plans, 157. See also
on income statement, 63–65 Budgets; Business planning
Economic events, 26 Financial reports. See also
Employees Balance sheet; Critical per-
accrued earnings, 43–44 formance factors (CPFs);
dividing sales by number of, Income statement; Statement
115 of cash flow
tracking time, 123–126 GAAP rules for preparing, 7–9
Empowerment, by business plan- important principles, 14–16,
ning, 141 132–133
Engineering expenses, 58 primary statements, 27–29