Financial Management

Pertemuan ke 7 Manajemen Bisnis & KewirausahaanHeru Priyanto, ST, MBA

Marketing Aspect

Operation Aspect

HR Aspect

Financial Aspect

Business Model Canvas

The Goal

• To make money or Adding Value for the Owner• Possible goals:

▫Company survive▫Avoid financial distress and bankruptcy▫Beat competition▫Minimize costs▫Maximize profits▫Maintain steady earnings growth

• Ultimate goal:▫TO MAXIMIZE THE CURRENT VALUE PER

SHARE OF EXISTING STOCK

Financial Statements

•Generally consist of:1. A statement of financial position (Balance

Sheet) snapshots, specified instant of time, stocks report

2. Income Statement motion pictures, specified period of time, flows report

3. Cash Flow Statement motion pictures, specified period of time, flows report

Financial Statements Relationship

Financial Statements Relationship

Balance Sheet• Snapshopt of the financial position of a company• It has two sides:

• Assets : cash, equipment & other resources needed to operate the business

• Liabilits & Owner Equity : sources that provided the entity’s assets

• Dual aspect concept: Assets = Liabilities + Owners Equity

Assets Liabilities & Owner ‘s Equity

Curent Assets Current Liabilities

Non Current Assets Non Current Liabilities

Owner’s Equity

Total = XXX Total = XXX

Example

Income Statement

•Financial statement that explained ‘how the income earned’ in a specified period

•Focus on the economic results of the entity’s operating activities during a period.

•Amount of added to Retained Earnings as a result of profitable operations during a period is the INCOME of the period.

•Net Income = Revenues – Expenses

Example

Cash Flow Statement

•The information derived from data reported in Balance Sheet & Income Statement

•The purpose is to provide information about the cash flows associated with the period’s operation and also about the entity’s investing & financing activities.

•Ability entity’s to fulfill its financial obligation to all stakeholder (shareholder, lender, supplier, employee) depend on its cash flow management skill

Type of Cash Flow

Source of Cash

Operating Investing Financing

+ cash received from customers- Cash paid to suppliers

- purchases of inv. securities+ Proceeds from sales of inv. sec

+ proceeds long term debt- Payment to settle short term debt

Example

Time Value of Money

•A $ in hand today is worth more than a $ promised at some time in the future

•Today I have 100 dollar in the bank deposit, how much the value of its ten years from now?

•Future Value (FV) = the amount an investment is worth after one or more periods

•PresentValue (PV) = the current value of future cash flows discounted at the appropriate discount rate

Example

END

It is not the creation of wealth that is wrong, but the love of money for its own sake.Margaret Thatcher Read more at http://www.brainyquote.com/quotes/quotes/m/margaretth385698.html#iDg35Jcf1QFTuRvv.99