PLANNING- develop detailed financial & operational description of

anticipated operations
- Setting of objectives, defining strategy, constructing action plan,
construction of budget, detailed look @ current external & internal
business environment
EXECUTING- performing action plan and day-to-day act of company
- directing: instructing, guiding, overseeing performance of workers
Motivating: giving workers internal drive decide to take an action
CONTROLLING- ensuring that org operates the intended manner to
achieve its goals
- obtaining feedback, taking corrective actions
FINANCIAL ACCTNG
MANAGERIAL ACCTNG
- external users
- internal (member of mngement)
- reliability & precision
- relevance & timeliness
- whole org
- diff segments of org
- follow GAAP
- not follow GAAP
- highly aggregated(summary)
- very detailed
- annually/quarterly
- frequently as needed
- the process
- the product of the process
CONTROLLER(inside)
TREASURER(outside)
- financial info
- financial transact
-budgets, F/S, tax returns
- investment mngemnt
- planning & control
- short term financing
- reporting & interpreting
- banking & custody
- evaluating & consulting
- insurance
- implement of financial
- relationship with financial institution/
planning process
investors
- tax admin, govt reporting, protection of assets
LINE
STAFF
- directly involve in carrying out
- assists and supports those in line
mission of org. They are responposition
sible for carrying out primary
- they dont have control to those who
activity of an organization are in line position
INTEGRITY
- mitigate(less severe) confict of interest
- avoid conduct that will prejudice(harm) carrying out duties ethically
- abstain from engagements that may discredit the profession
COMPETENCE
- maintain appropriate level of expertise
- perform duties in accordance with relevant laws, regulations, standards
- info that are accurate, clear, concise & timely
- recognize & communicate professional limitations
CONFIDENTIALITY
- info must be confidential except when authorized, legally/professionally
- do not use info for unethical/illegal advantage
CREDIBILITY
- communicate info fairly and objectively
- disclose all relevant info for decision making
- disclose delays/deficiency in info
Trend/historical: year2 - base
X year
Base year
Common size/vertical:
x
X
Total assets (etc)

Current ratio: current assets Acid test ratio: quick assets (cash,AR, MSec)
current liab
current liab
Receivable turnover: net credit sale
Ave. AR

FG turnover:

COGS
ave.of FG inventory

No. Of days sales in receivable (DAYS): 365 days(if silent, 360days)

Receivable turnover
Raw mat turnover: cost of raw mat used
Ave raw materials
ROE: net income
Net of equity
EPS: net income
OS par

Asset turnover: net sales

net total assets
Price earnings ratio: market price per share
EPS

Div per share: div paid in common stockholder

OS par
ASSET = LIAB(DEBT) + CAPITAL(EQUITY)