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Summary Finance Chapter 3,4,5,6,9
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Summary of Finance Chapter 3,4,5,6,9 of the course Finance at NHL Stenden 2nd year Marketing Management
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Sum Finance 2.year 12 Term
mary
.
Chapter 3
Investment and Financing
the business than
Fixed assets - > severe for m o re one
year
(einher tangible Assets resources a invest in
company
=
orintangible) Bud Holding
ding
•
.
°
Loan receivabce
•
Vehicles
IGGY; " →
tägige]
" .
Land .
Inventory
Current assets → time between
purchase and Use in shor ter than a
year Casualty a few month s or less )
-
also in duale account receivable from customer s who have received delieveries but who have now paid yet
-
Financing can be obtain by usingr equity or
by credit
5. stocks a
Securities 7
•
receivables
•
Prepaymentg
•
work in progress •
bank
cash
[ )
F.
Equity capital made available by the Owners of the
Company 7
=
Share capital
unlimited period
•
premium reserve
-
availability for an
•
general profit reserve
the of
no
prior agreements on moment the
payment
-
.
long term
renard for providing equity profit generated by Provisions
'
the
company
- =
L loan capital
•
)
equity risk
bearing capital
-
= -
( bc profit depends on all Kind of uncertainties)
Liabilities creditor
F. Bank ( credit) •
Outs Landing dividend ]
=
capital made available by tax
• Accounts payable
. Outs Landing corporation
Outs
Landing amounts
[ Oletstanding
°
-
not liked to formal contra of the business turnover fax
)
always temporary
-
usually a fixed interesse rate is
paid on credit independent of the
company 's profit
-
risk avoiding capital
-
-
in case of bankrupt of the
Company creditors will receiver a refund before equity providers are considered
Balance Street
at agieren moment a balance can be made
inverted Cassens) and the financial resources used to
aquirethese
-
comparing the value of resources a
company
assets ( liabilities)
toter current assets romain less than will be discnssed
Fixed comprise tangible and intangible assets
year
a
assets
Balance Street will be balanced
by definition
Company 's =
Value of asset -
debts
equity
In come Statement Sales and costs
com
paris on of
=
(Repayment arendt included in in come Statement )
, Profit determination
Profit versus Cash flow
Difference between profit and cash in flows and out flows
t
(satesosminimum)
↳ difference : -
depreciation
-
provisions
direct
equity transactions
-
Depreciation -
Abschreibung
Straight line depreciation Depreciation method reducing the book Value by the some amount euery gear of the asset 's
- -
:
( lineare Abschreibung ) economic life
Accelerator depreciation method
-
:
Depreciation applying high e r depreciation in the first years than in the last
( beschleunigte Abschreibung )
Two methods -
Sum of the
gears dis
it method → arnual
depreciationcalculatedbydecreasingweight.mg factor
to achieve this :
( of ing )
=
gears economic life remains
Declining balance method of
-
→ calculahed by fixedpercenrage book value of the asset on the
balance street -
Boom value is value after dedeecting depreciaricn of
precious year
Provisions =
balance entry representing future obligation deriving from business activities in the
past gear
( '
cash is fach , profit an
opinon
Iv I
Cash flow can
'
t be manipulated
h
Profit can be
adjusted up
I down
by over
Optimist:c or
Pessimist:c estimates of provision
to
for the financial Company 100k
Creative of optimist:c estimates Statement make the bester
accounting use
business activities)
Direct equity transactions :
owner deposit & → have no influence on profit ( be not related to
Owner withdrawl
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