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Technology Entrepreneurship. Entrepreneurs and The Business of Accounting, Finance and Economics. Technology Entrepreneurship. What About Your PRESENTATION…? Make Some Magic…!!!. 1. Revenue 2. Expense 3. Asset 4. Liability 5. Equity. 6. Assets= Liab.+Equity 7. Rev – Exp = Income
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TechnologyEntrepreneurship Entrepreneurs and The Business of Accounting, Finance and Economics
TechnologyEntrepreneurship What About Your PRESENTATION…? Make Some Magic…!!!
1.Revenue 2. Expense 3. Asset 4. Liability 5. Equity 6. Assets= Liab.+Equity 7. Rev – Exp = Income 8. Debits on the Left 9. Credits on the Right 10. Dr must equal Cr Technology EntrepreneurshipTen Accounting Items
TechnologyEntrepreneurship Financial…Information Managerial…Information Operational…Information
TechnologyEntrepreneurship Financial Financial Statements Cash Flow Statements Capital, Investments and Returns
TechnologyEntrepreneurship Financial Financial Statements…GAAP “Generally Accepted Accounting Principles” What about them???
TechnologyEntrepreneurship Financial Cash Flows Cash Balance… Cash - In Flows… Cash – Outlays… Ending Cash Balance
TechnologyEntrepreneurship Financial Cash flows-Monthly Schedule
TechnologyEntrepreneurship Financial Capital, Investments and Returns • The Time Value of Money • Present Value • Discounted Cash Flows • Cost of Capital
TechnologyEntrepreneurship Financial Time Value of Money
Technology Financial NPV and Discounted Cash Flows
TechnologyEntrepreneurship Cost of Capital Cash has a price… • The Cost of Debt….. • The Cost of Equity… • Cost of Funds…???... Concept and Framework!!!
TechnologyEntrepreneurship Managerial Cost, Volume, Profit Analysis Contribution Margin Break Even
TechnologyEntrepreneurship Contribution Margin Statement Sales (400 units)… .$100,000 ($250/unit) Less Var. Cost……..$(60,000)($150/unit) Contribution Margin $40,000 $100/unit Less Fixed Cost….....$(35,000) Net Operating Inc……..$5,000
TechnologyEntrepreneurship Break Even In Units….. (CM per unit=CM/units sold) Q =TFC / CM per unit Q = $35,000 / $100 Q = 350 units sold
TechnologyEntrepreneurship Break Even In Dollars…. (CM Ratio=Sales/CM) $ = TFC / CM Ratio $ = $35,000 / 40% $ = $87,500 in Sales
TechnologyEntrepreneurship Target Profit of $20,000 In Dollars…. $ = Target Profit + TFC / CM Ratio $ = $20,000 + $35,000 / 40% $ = $137,500 in Sales
TechnologyEntrepreneurship Break Even…$0 profit $87,500 / $250 selling price 350 Units Target Profit of $20,000 $137,500 / $250 selling price 550 Units Can the class prove it?
TechnologyEntrepreneurship Operational Activity Based… Costing to Activity Based Funds Flow Design Production Quality
TechnologyEntrepreneurship Good Night & Good Luck
TechnologyEntrepreneurship Intentionally BLANK