1. Financial Management Pertemuan ke 7 Manajemen Bisnis & Kewirausahaan Heru Priyanto, ST, MBA

2. Marketing Aspect Operation Aspect HR Aspect Financial Aspect Business Model Canvas

3. 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

4. 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

5. Financial Statements Relationship

7. 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 AssetsLiabilities & Owner ‘s Equity Curent AssetsCurrent Liabilities Non Current AssetsNon Current Liabilities Owner’s Equity Total = XXX

8. Example

9. 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

10. Example

11. 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

12. 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

13. Example

14. 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

15. Example

16. 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/margarett h385698.html#iDg35Jcf1QFTuRvv.99 http://www.brainyquote.com/quotes/quotes/m/margarett h385698.html#iDg35Jcf1QFTuRvv.99