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UO BA 101 - Foundation Process
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BA 101 1st Edition Lecture 6 Outline of Last Lecture 1 Announcements admin 2 Lecture Buyer s and seller s markets 3 Sales forecasting methods insights and techniques Outline of Current Lecture I Rehearsal tutorial II Lecture Accounting Current Lecture I Rehearsal Tutorial Foundation process Introductory lesson Rehearsal tutorial due tonight 11 59pm Practice Rounds 2 Official Rounds 8 You need to correctly process your decisions after you make them in all stages of foundation The way to do this is after you input your decisions in the various spreadsheets click File select Update Official Decisions and click save then Process then File and then Exit That will correctly record and process your decisions for your company Get technical help if you re having technical problems the helpline for foundation is lecture notes for week 2 Some Due Dates Tonight Rehearsal Tutorial and Rehearsal Tutorial Quiz 11 59pm Tuesday 27th Practice Round 1 Thursday 29th Practice round 2 Online Quiz 2 II Lecture Accounting Accounting is concepts represented by numbers The goal of business is to create wealth for its owners or stakeholders Businesses compete for transaction is the market These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute How can you measure how well you re doing Measure individual transactions Put them together and measure how much wealth you have and where did it come from Assets liabilities owner s equity Revenue expense profit Accounting Documents Balance Sheet A financial statement that summarizes a company s assets liabilities and shareholder s equity at a specific point in time Assets An asset is a resource controlled by a company as a result of past events and from which future economic benefits are expected to flow to the company Liabilities Obligations of a company or organization amounts owed to lenders suppliers and employees Owner s Equity The difference between assets and liabilities Assets that are easy to convert o cash come first fixed assets are last on a balance sheet Current liabilities are ones that are supposed to be paid off in a one year time frame long term liabilities are any that are paid off over a time period longer than a year Some of your assets will depreciate over time you are allowed to deduct some of their value each year Common Stock is whatever amount of money was paid in by the owners not from loans Income Statement The story of transactions over a specific time period Revenue and Sales Transactions Business and its customers Expense transactions Business and its suppliers such as resources people and capital Net income is also Profit The difference between revenue and expense Expenses Variable costs costs of goods sold COGS Labor used to make a product or service Material to make product or service Cost of keeping inventory Period or Fixed Costs operating expense Selling promotion expenses Administrative expenses R D expenses Depreciation expense Income Statement Revenue funds from the sale of the product Variable costs more products you make the greater the variable costs Material costs cost of the materials in the products Labor costs cost of the labor for products sold Contribution margin the difference between revenue and COGS Period costs fixed over a period of time doesn t vary based on amount of product made or sold Depreciation lessening of value of equipment or land over a period of use time R D cost of developing new products improving existing products Earnings Before Interest and Taxes EBIT The formula for calculating EBIT from an income statement is Revenue Variable costs contribution margin period costs EBIT Then you subtract interest expenses and taxes from your EBIT and you get your Net Income also knowns as net profit earnings bottom line return If the company re invests its known as retained earnings if it is paid out to shareholders it is known as dividends


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UO BA 101 - Foundation Process

Type: Lecture Note
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