Entrepreneurship for Computer Science CS 15-390

Transcript:Entrepreneurship for Computer Science CS 15-390:
Entrepreneurship for Computer Science CS 15-390 Financial Intelligence- Part III Lecture 21, April 14, 2019 Mohammad Hammoud Today… Last Session: Financial Intelligence- Part II Today’s Session: Financial Intelligence- Part III Announcements: Project’s milestone 4 is due today by midnight Quiz II is on Tuesday, April 16 during the class time Final exam is on Wednesday, May 1 from 1:30 to 4:30 in Room 1030 Interpreting Balance Sheets: An Example Assets that are easily converted into cash within the next operating period (typically within 1 year) Assets that CANNOT be easily converted into cash within the next operating period (typically within 1 year) Short-term obligations that have to be paid within 1 year Long-term obligations that will be paid off over a period of years Interpreting Balance Sheets: An Example A measure of solvency - = Net Working Capital Interpreting Balance Sheets: An Example Listed in the order of liquidity (i.e., the ability of an asset to be converted into cash) Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Listed in the order that they are due Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Interpreting Balance Sheets: An Example Let us elaborate a little bit on this section Stocks: Few Basics A stock is a piece of ownership in a company A holder of stocks (i.e., a shareholder) has a claim to a part of the company's assets and earnings The ownership of a shareholder is determined by the number of shares they own relative to the number of outstanding shares E.g., If a company has 1,000 outstanding shares and one person owns 100 shares, that person would own and have claim to 10% of the company's assets and earnings Outstanding shares include shares held by institutional investors as well as restricted shares held by insiders and company officers Stocks: Few Basics There are two types of stocks: Common Stocks: They entitle the owners to vote at meetings of board of directors The owners may or may not receive dividends (i.e., a distribution of a portion of a company’s earnings), decided by the board of directors Preferred Stocks: They do not entitle the owners to vote at meetings of board of directors The owners receive fixed