An Overview of Business Finance-1
An Overview of Business Finance-1
An Overview of Business Finance-1
(1)Sole proprietorships,
(2)Partnerships,
(3)Corporations, and
(4)Limited liability companies
Forms of Business Organizations
• A proprietorship is an business owned by one individual, a person
begins business operations.
2013 2014
Net Sales 3000 2850
Operating costs except Dep & Amort. 2616 2497
Dep & Amortization 100 90
Total Operating Costs 2716 2587
Operating Income or EBIT 284 263
Less Interest 88 60
Earning Before Taxes 196 203
Taxes 78 81
Net Income 118 122
2 - The left side of the statement shows the assets that the
company owns, while the right side shows the firm’s liabilities
and stockholders’ equity.
STOCKHOLDER’S EQUITY
COMMON STOCK
RETAINED EARNINGS
Operating Activities:
Net Income 117
Dep & Amortization 100
Increase in Inventories (200)
Increase in A/C Receivable (30)
Increase in Accrued Wages & Tax (10)
Net Cash provided by operating activities ( 3)
Financing Activities
Increase in notes payable 50
Increase in bonds outstanding 170
Payment of dividends to stockholders (57)
Net cash provided by financing activities 162
ABC Co. Statement of Cash Flow for 2018