January 21, 2017 admin_61054

Valuing a Start Up Conjuring Wealth out of Thin Air   In order to raise money for a venture, you must first come up with a valuation for the nascent enterprise. Valuing a start up can seem like an act of legerdemain, a magic trick. How do you put a concrete value on something that…

January 15, 2017 admin_61054

The Big Picture of Financial Statements   The three Financial Statements: Balance Sheet, Income Statement, and Cash Flow Statement, are interconnected and the accounting numbers flow through them.   They are the measure of a company’s performance and health. The basic interconnection starts with a Balance Sheet showing the financial position at the beginning of the…

January 12, 2017 admin_61054

 Financial Flow States: The Cash Flow Statement   Besides the Income Statement and the Balance Sheet, there is a third financial statement called the Cash Flow Statement. The Cash Flow Statement reconciles the Income Statement with the actual cash position of the company (the balance in the bank account) by adding and subtracting revenues and…

January 9, 2017 admin_61054

Understanding Financial Statements: The Income Statement There are two basic financial statements: the Balance Sheet and the Income Statement. The daily operations of a business are measured in the money that comes in as revenues, the money that goes out as expenses, the money that is retained as profit, the money that is invested in…

January 4, 2017 admin_61054

What does the Balance Sheet balance?   The balance sheet is structured to show the amount and type of assets an enterprise owns and how those assets are funded. One side of the balance sheet shows what you have (assets) and the other side shows how you paid for it (debt and equity). Assets can…

January 2, 2017 admin_61054

Balance Sheet Basics   The Balance Sheet is a condensed statement that shows the financial position of an entity on a specified date, usually the last day of an accounting period. This is a follow up to the post on Financial Statements. Among other items of information, a balance sheet states • What Assets the…

January 1, 2017 admin_61054

Understanding Financial Statements Understanding Financial Statements Part 1 This series of posts will give you an understanding of Financial Statements ASAP. This knowledge can be highly impactful for the quality of your career, job prospects, and life. Everyone should have a basic understanding of Financial Statements: what they are and what information they provide. It’s…

December 27, 2016 admin_61054

Present Value and Future Value   Money invested in income producing assets can grow exponentially over time. The time value of money is the relationship between the present value of a dollar and its future value. This relationship is represented as an interest rate.   Related Post: Time Value of Money   Here is an…

December 17, 2016 admin_61054

Time is Money   The Time Value of Money The Fundamental Principle of Finance Time is money, literally. If there is a prospect of receiving a certain sum, then the sooner you receive it, the more it is worth. There is risk in waiting. A bird in the hand is worth two in the bush….