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M3 Flashcards

1
Q

Target Level of Ending Inventory

A

Production Budget (1)
GIVEN

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2
Q

Beginning Inventory

A

Production Budget (1)
First month: GIVEN
Succeeding months: TARGET LEVEL OF ENDING INVENTORY of Previous month

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3
Q

Required Production

A

Production Budget (1)
SUM of Total + Beginning Inventory

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4
Q

Units

A

Production Budget (2)
PROJECTED SALES (PB1)

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5
Q

Sales in Peso

A

Production Budget (2)
PRODUCT of Selling Price * Units

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6
Q

Collection from Current Month

A

Production Budget (2)
Percentage: GIVEN, Base price: SALES IN PESO

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7
Q

Collection from Previous Month

A

Production Budget (2), Month After Sale
Percentage: GIVEN, Base price: SALES IN PESO

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8
Q

Collection from Two Months Prior

A

Production Budget (2), 2 Months After Sale
Percentage: GIVEN, Base price: SALES IN PESO

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9
Q

Total Collection from Sales

A

Production Budget (2)
SUM of all Collections

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10
Q

Required Production

A

Production Budget (2)
REQUIRED PRODUCTION (PB1)

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11
Q

Cost in Peso

A

Production Budget (2)
PRODUCT of Cost * Required Production

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12
Q

Payment for Current Month

A

Production Budget (2), Month of Sale
Percentage: GIVEN, Base price: COST IN PESO

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13
Q

Payment for Previous Month

A

Production Budget (2), 1 Month after Sale
Percentage: GIVEN, Base price: COST IN PESO

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14
Q

Payment for 2 Months Prior

A

Production Budget (2), 2 Months after Sale
Percentage: GIVEN, Base price: COST IN PESO

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15
Q

Total Payment for Costs

A

Production Budget (2)
SUM of all Payments

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16
Q

Total Payment for Purchases

A

Operations Budget
TOTAL PAYMENT FOR COSTS (PB2)

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17
Q

Rent Payments

A

Operations Budget
GIVEN

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18
Q

Wages

A

Operations Budget
GIVEN

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19
Q

Salaries

A

Operations Budget
GIVEN

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20
Q

Tax Payment

A

Operations Budget
GIVEN

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21
Q

Fixed Asset Outlay

A

Operations Budget
GIVEN

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22
Q

Interest Payment

A

Operations Budget
GIVEN

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23
Q

Cash Dividend

A

Operations Budget
GIVEN

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24
Q

Principal Payment

A

Operations Budget
GIVEN

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25
Total Cash Disbursement
Operations Budget SUM of all Rows
26
Cash Receipts
Cash Budget TOTAL COLLECTION FROM SALES (PB2)
27
Cash Disbursement
Cash Budget TOTAL CASH DISBURSEMENT (OB)
28
Net Cash Flow
Cash Budget SUM of Cash Receipts + Cash Disbursement
29
Beginning Balance
Cash Budget First month: GIVEN Succeeding months: ENDING BALANCE of Previous month
30
Ending Balance
Cash Budget SUM of Net Cash Flow + Beginning Balance
31
Minimum Cash Balance
Cash Budget GIVEN
32
Cumulative Excess Cash Balance (Cumulative Required Financing)
Cash Budget SUM of Ending Balance + Minimum Cash Balance
33
Setting the goals of the organization and identifying ways on how to achieve them.
Planning
34
Involves reviewing of past financial performance, trends and ratios then doing financial projection or forecasting.
Financial Planning
35
Long-term goals and policies Organization's goals, mission vision, values, and culture
Strategic Planning
36
Level of detail = low
Strategic Planning
37
Specific actions to attain long-term goals Smaller actionable goals with deadlines Budgetary requirements, resources needed, marketing, funding, and PR strategies
Tactical Planning
38
Level of detail = medium
Tactical Planning
39
Roadmap to achieve the tactical goals within a realistic time frame Day-to-day running of the business Single use or Ongoing plans
Operational Planning
40
Level of detail = high
Operational Planning
41
Financial Planning Process Steps
Choose the Best Alternatives/Tactics Formulation of Supporting Plans Implement the Plans Evaluate the Results
42
Analyze data gathered and after consideration of the merits of each alternative and one's resources available, choose the best one that most likely will achieve set goals
Choose the Best Alternatives/Tactics
43
Establish a responsibility center; make sure you have accountability and a set timeline; Have contingency plans as well as supporting plans (recruitment, procurement, and training)
Formulation of Supporting Plans
44
Monitoring and supervision is important to see if the business is going towards achieving the set goals; make sure to have an evaluation system for monitoring and controlling; Have financial control by ensuring feedback and adjustments to unexpected scenarios
Implement the Plans
45
Take corrective actions and revise plan as needed; implement alternative plans when needed to minimize negative effects; Deviations from the budget or set plans should be investigated
Evaluate the Results
46
Attempt to predict what may happen in the future through qualitative and quantitative forecasts
Forecasting
47
Alternative courses of action when unexpected things occur and implementing them when certain trigger points occur
Contingency Planning
48
Long-term version of contingency planning by anticipating future events caused by major environmental, social, and political stimuli
Scenario Planning
49
Involves external comparisons of a company's practices and technologies with those of other companies
Benchmarking
50
Planning process that includes people who will be affected by the plans and those who will be involved in its implementation
Participatory Planning
51
Projection of sales of products or services expressed monetary values Based on past sales performance
Sales Forecast
52
Factors that may affect future sales performance
Inflation rate Trends in the market Investment climate
53
Financial forecasts that present the company's expected financial position, result of operations, and cash flows
Projected Financial Statements
54
This is a statement of projected sales, expenses and income, and other financial transactions for the coming period; it is also known as the company's financial plan
Budget
55
It has TWO major purposes; as a tool for PLANNING and a tool for CONTROL
Budget
56
Indicates the number of units a company expects to sell; The determinant of all other budgets
Sales Budget
57
Provides information regarding the number of units that should be produced over a given accounting period based on expected sales and targeted level of ending inventories
Production Budget
58
Production Budget Formula
Expected Sales + Desired Ending Inventory - Beginning Balance = Required Production in Units
59
Refers to the variable and fixed costs needed to run the operations of the company but are not directly attributed to the generation of sales
Operations Budget
60
Statement of the company's planned inflows and outflows of cash; Used to estimate short term requirements with particular attention being paid to planning for surplus cash and for each shortages
Cash Budget
61
Borrowing money from lenders and not giving up ownership
Debt Financing
62
Method of raising capital by selling company stocks to investors in exchange of ownership interest in the company
Equity Financing
63
Sources of Short-term Financing
Advances from stockholders Bank Loans Credit cooperatives Supplier's credit Lending Companies Informal Lending Sources
64
Sources of Long-term Financing
Banks Internally generated funds Bond Market Lending Companies Equity Investors

Business Finance (3 decks)

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