Entrepreneurs the world over have been buzzing with the news that Facebook will soon be conducting an initial public offering (IPO), valuing the company somewhere between $75 billion and $100 billion USD. As part of the IPO process Facebook is required to release its revenue figures, which totaled $3.7 billion last year. So a quick …
Feb
22
Feb
10
Statement Of Cash Flows – Part 2
Last week we introduced readers to the third and final of the three major financial statements, the statement of cash flows, and produced the above-referenced example for our fictitious Acme Corporation. Now it is time to do some financial analysis to see what the statement of cash flows has to tell us about the all-important …
Feb
03
Statement Of Cash Flows Part 1
Now that we have completed our guides to understanding your company’s balance sheet and income statement, it is time to turn our attention to the third and final of the major financial statements, the statement of cash flows. Like the income statement, the statement of cash flows gives us a picture of a company’s performance …
Jan
26
Understanding the Income Statement – Part 2
Acme Inc. Income Statement Dec. 31, 2010 Total Revenue $150,000 Cost of Goods Sold (COGS) $60,000 Gross Profit $90,000 Operating Expenses Research & Development (R&D) $5,000 Selling, General and Administrative Expenses (SG&A) $45,000 Operating Income Earnings Before Interest & Taxes (EBIT) $40,000 Interest Expense $5,000 Taxes (30%) $12,000 Net Income $23,000 …
Jan
19
Understanding the Income Statement – Part 1
We recently wrapped up our two-part piece on balance sheets, and today we are going to move on and start taking a look at the next financial statement on our list, the income statement. Unlike the balance sheet, which looks at a company’s financial position at a specific moment in time, the income statement reflects …
Dec
22
Understanding the Balance Sheet – Part 2
In our previous Build Your Biz entry, we introduced readers to the balance sheet of the fictitious Acme Corporation presented below. At the time, we gave a brief explanation of each of the items on the balance sheet that you may want to review before diving into this post, which is aimed at teaching you …
Dec
13
Understanding the Balance Sheet – Part 1
Today we are going to begin a multi-part series in which we explore, explain, and hopefully enlighten Build Your Biz readers about the often-confusing world of financial statements. We’ll be looking at the three most common statements—the balance sheet, the income statement, and the statement of cash flows—and trying to give you an understanding of …
Dec
01
Recession Survival Skills-Part 2
In our previous Build Your Biz post we defined a global recession and discussed the possibility that we could be headed for one. While we are not here to make economic predictions, we would like to offer small-business owners five strategies to help cope with the next recession whenever it does arrive. Focus on Costs …
Oct
27
Recession Survival Skills-Part 1
If you’ve been paying attention to the (mostly grim) financial news lately then you may have noticed a good deal of chatter about whether or not the global economy is headed for a double-dip recession. And while some of you are probably familiar with the dreaded double-dip when it comes to chips and dip, you …
Oct
05
Exchange Rates – Part 2
In our previous Build Your Biz post we gave an overview of the way that currency markets operate and explained the importance of foreign exchange rates to many small business owners in today’s global economy. Now let’s take an in-depth look at some of the specific ways that exchange rates can affect your business and …
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