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Technology Entrepreneurship

Technology Entrepreneurship. Entrepreneurs and The Business of Accounting, Finance and Economics. Technology Entrepreneurship. What About Your PRESENTATION…? Make Some Magic…!!!. 1. Revenue 2. Expense 3. Asset 4. Liability 5. Equity. 6. Assets= Liab.+Equity 7. Rev – Exp = Income

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Technology Entrepreneurship

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  1. TechnologyEntrepreneurship Entrepreneurs and The Business of Accounting, Finance and Economics

  2. TechnologyEntrepreneurship What About Your PRESENTATION…? Make Some Magic…!!!

  3. 1.Revenue 2. Expense 3. Asset 4. Liability 5. Equity 6. Assets= Liab.+Equity 7. Rev – Exp = Income 8. Debits on the Left 9. Credits on the Right 10. Dr must equal Cr Technology EntrepreneurshipTen Accounting Items

  4. TechnologyEntrepreneurship Financial…Information Managerial…Information Operational…Information

  5. TechnologyEntrepreneurship Financial Financial Statements Cash Flow Statements Capital, Investments and Returns

  6. TechnologyEntrepreneurship Financial Financial Statements…GAAP “Generally Accepted Accounting Principles” What about them???

  7. TechnologyEntrepreneurship Financial Cash Flows Cash Balance… Cash - In Flows… Cash – Outlays… Ending Cash Balance

  8. TechnologyEntrepreneurship Financial Cash flows-Monthly Schedule

  9. TechnologyEntrepreneurship Financial Capital, Investments and Returns • The Time Value of Money • Present Value • Discounted Cash Flows • Cost of Capital

  10. TechnologyEntrepreneurship Financial Time Value of Money

  11. Technology Financial NPV and Discounted Cash Flows

  12. TechnologyEntrepreneurship Cost of Capital Cash has a price… • The Cost of Debt….. • The Cost of Equity… • Cost of Funds…???... Concept and Framework!!!

  13. TechnologyEntrepreneurship Managerial Cost, Volume, Profit Analysis Contribution Margin Break Even

  14. TechnologyEntrepreneurship Contribution Margin Statement Sales (400 units)… .$100,000 ($250/unit) Less Var. Cost……..$(60,000)($150/unit) Contribution Margin $40,000 $100/unit Less Fixed Cost….....$(35,000) Net Operating Inc……..$5,000

  15. TechnologyEntrepreneurship Break Even In Units….. (CM per unit=CM/units sold) Q =TFC / CM per unit Q = $35,000 / $100 Q = 350 units sold

  16. TechnologyEntrepreneurship Break Even In Dollars…. (CM Ratio=Sales/CM) $ = TFC / CM Ratio $ = $35,000 / 40% $ = $87,500 in Sales

  17. TechnologyEntrepreneurship Target Profit of $20,000 In Dollars…. $ = Target Profit + TFC / CM Ratio $ = $20,000 + $35,000 / 40% $ = $137,500 in Sales

  18. TechnologyEntrepreneurship Break Even…$0 profit $87,500 / $250 selling price 350 Units Target Profit of $20,000 $137,500 / $250 selling price 550 Units Can the class prove it?

  19. TechnologyEntrepreneurship Operational Activity Based… Costing to Activity Based Funds Flow Design Production Quality

  20. TechnologyEntrepreneurship Good Night & Good Luck

  21. TechnologyEntrepreneurship Intentionally BLANK

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