The Business Model Canvas
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
LESSON 01 - Finance basics for Managers SECTION 01: FINANCE BASICS -The Key Financial Statements *** The Balance Sheet -Assets: Physical resources that a company owns: Examples: - Land and Buildings - Plant and Machineries - Motor vehicles - Trade Debtors / Accounts Receivables - Investments - Cash
Andrew Ng Jan 23,2013
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
Liabilities & Owner’s Equity Liabilities: Debts that the company owe to suppliers & other creditors – Examples -Current Liabilities - Trade & Other Creditors - Accounts payable - Short term loan - Accrued expenses & Income taxes -Long term Liabilities -Debts that the company is contractually obligated to repay over a period of time longer than one year
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
-Owner’s equity is what’s left after your subtract total liabilities from total assets Assets – Liabilities = Owners’ Equity Assets = Liabilities + Owners’ Equity -Owners’ Equity includes: -Retained earnings: net profit that accumulate on a company’s balance sheet after payment of dividends to shareholders and; - Paid up capital: Capital received in exchange for shares
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
-How does the Balance Sheet relates to you -Working capital -Subtracting current liabilities from current assets gives you the company’s net working capital -Financial leverage -The use of borrowed money to acquire an asset is called financial Leverage -A company is highly leveraged when the percentage of debt on its balance sheet is high relative to the capital invested by the owners -Financial structure of the firm - Creating a balance between debt and equity on the balance sheet
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
- The Income Statement -It shows cumulative business results within a defined time frame, such as a quarter or a year. -It tells you whether the company is
LESSON 01 - Finance basics for Managers SECTION 01: FINANCE BASICS -The Key Financial Statements *** The Balance Sheet -Assets: Physical resources that a company owns: Examples: - Land and Buildings - Plant and Machineries - Motor vehicles - Trade Debtors / Accounts Receivables - Investments - Cash
Andrew Ng Jan 23,2013
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
Liabilities & Owner’s Equity Liabilities: Debts that the company owe to suppliers & other creditors – Examples -Current Liabilities - Trade & Other Creditors - Accounts payable - Short term loan - Accrued expenses & Income taxes -Long term Liabilities -Debts that the company is contractually obligated to repay over a period of time longer than one year
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
-Owner’s equity is what’s left after your subtract total liabilities from total assets Assets – Liabilities = Owners’ Equity Assets = Liabilities + Owners’ Equity -Owners’ Equity includes: -Retained earnings: net profit that accumulate on a company’s balance sheet after payment of dividends to shareholders and; - Paid up capital: Capital received in exchange for shares
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
-How does the Balance Sheet relates to you -Working capital -Subtracting current liabilities from current assets gives you the company’s net working capital -Financial leverage -The use of borrowed money to acquire an asset is called financial Leverage -A company is highly leveraged when the percentage of debt on its balance sheet is high relative to the capital invested by the owners -Financial structure of the firm - Creating a balance between debt and equity on the balance sheet
MT 5011 FINANCE FOR ENGINNERING & TECHNOLOGY MANAGEMENT
- The Income Statement -It shows cumulative business results within a defined time frame, such as a quarter or a year. -It tells you whether the company is