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Photo: Jenny Gignoux, Ghana
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Financial Statement Review
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Mr. Stuart MackenzieDirector of Financial Reporting
University of British Columbia
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Objectives
• Why financial statements important?
• Review UBC’s statements
• Difference between profit and cash
• Profit and loss key measures
• Importance of budgets
• Balance Sheet key measures
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University of British Columbia
• Established 1908
• 54,000 students over two campuses
• Top 40 in world rankings
• Major research programs ($500 million)
• Faculties – Medicine, Science, Arts, Commerce
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UBC financialstatements
• Statement of Operations– Revenue sources– Expenses– Surplus before capex
• Statement of Financial Position– Cash (see cash flow)– Investments– Endowments– Deferred contributions
• Statement of Cash Flow• Notes to financial statements
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Cash or profit?
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Profit & Loss Statement
• Revenue– Key business driver– Source of growth– Identify lines of business– Volume/price
• Expenses– Variable (cost of sales, margins)– Fixed (overhead)
• Interest• Taxes
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Budgets
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Balance Sheet
• Cash– Cash flow statement
• Working capital– Short-term liquidity (12 months)
• Other assets and other liabilities– What are they?
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Conclusion
• Cash is king!
• Revenue is business driver
• Cost structure (variable/fixed)
• Budgets (targets improve performance)
• If it doesn’t make sense, ask.
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www.uniterra.ca