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OU / Entrepreneurship / ENT 3513 / Gross Profit Margin refers to what?

Gross Profit Margin refers to what?

Gross Profit Margin refers to what?

Description

School: University of Oklahoma
Department: Entrepreneurship
Course: Venture Capitalization
Professor: Jim wade
Term: Spring 2018
Tags:
Cost: 50
Name: VC Midterm Study Guide
Description: This study guide covers everything you need to know for the exam. In order to use it best, I would recommend going back through each of the examples used in class.
Uploaded: 03/09/2018
2 Pages 6 Views 5 Unlocks
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Venture Capitalization Midterm Review Guide


Gross Profit Margin refers to what?



Formulas to Memorize:

*always reconcile retained earnings  beginning RE + net income – dividends = end RE Gross Profit Margin = gross profit / sales revenue

EBDAT = cash fixed costs / gross profit margin

△Cash = beginning cash – ending cash

Cash Build = sales – △accounts receivable

Cash Burn = add uses, subtract sources 

Ratios: 

Liquidity

Current = current assets / current liabilities 

Quick = (current assets – average inventories) / current liabilities 

NWC= (current assets – current liabilities) / total assets

Leverage

TD/TA = total debt / total assets

CL/TD = current liabilities / total debt

Interest Coverage = EBITDA / interest

Profitability

GPM = gross profit / sales

NPM = net profit / sales

Efficiency

Sales/TA = sales / total assets


What is EBDAT?



ROA = net income / average total assets

ROE = net income / average owner’s equity

C3 = (inventory­to­sale conversion period + sales­to­cash conversion period) – purchase­to payment period

I­S = average inventories / (COGS/365)

S­C = accounts receivable / (net sales/365)

P­P = average payables / (COGS/365)

Things to Know How to Do:

­ Find the EBDAT Breakeven Point (review what constitutes a cash fixed cost) ­ Statement of Cash Flows (including operating, investing, and financing) ­ Calculate Cash Build and Cash Burn

­ Common Size Income Statement (sales as base) and Balance Sheet (total assets as base) ­ Calculate the Cash Conversion Cycle (C3)

­ Calculate ALL ratios

­ Analyze Financial Statements 

o In order to do this, I would review every example from class and understand how  to recognize strengths and weaknesses in financial statements. Our professor  indicated that practice makes perfect and there is no one single right answer  (although there are multiple wrongs ones), therefore you should consider 


Cash Build is what?



Don't forget about the age old question of What type of chemical bond is a molecule?

practicing over and over again until you feel like you completely understand the  material.

Tips for the Exam:

­ Do not blindly assume there is too much inventory

­ Make sure to connect the findings in each part of the financial statements to fully  understand what they tell us.

­ Consider making a note by each step as to what you find interesting (i.e. if they ran out of a ton of cash or expenses went up dramatically), and that will 

Short 

Term 

Assets

Short 

Term 

Debt

Long 

Term 

Assets

Long 

Term 

Debt

help you bring everything together for the analysis section. ­ PRACTICE, PRACTICE, PRACTICE o Not all financial statements on the test will be the same.  Some will not have depreciation, some will not have 

inventories, therefore you need to understand what parts

of the statements are included in each step because you  cannot simply memorize each line, since they change.

­ The exam will include multiple “what­if” questions. For example, he could ask “what if  inventory did not change” or “what if a dividend was not paid.” Then you will need to  look at your financial statements and ratios to see what effect those things would have on  the company. 

­ It is my understanding that there will be no partial credit for the exam. Although this is  harsh, there are numerous ways to check yourself throughout the process so make sure  you are double checking your calculations and being very careful throughout the entire  exam. Don't forget about the age old question of what is the connection between connection between harm and porn?
We also discuss several other topics like what is catholic?
If you want to learn more check out What is a movement?
If you want to learn more check out What is a meaning of the word symptom?
If you want to learn more check out What is Social Deviance?

­ Bring a calculator. 

­ Greatest Teaching Tool in the World = 

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