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| Preface | |
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| Financial and Economic Concepts | |
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| Basic Financial Concepts | |
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| Importance of Finance | |
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| Economic Concepts of Finance | |
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| Scarce Resources | |
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| Opportunity Costs | |
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| Savings, Income, Expenditures, and Taxes | |
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| Supply of Money Saved | |
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| Demand for Borrowed Funds | |
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| Federal Reserve Policy | |
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| Inflation | |
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| Risk | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Financial Management and Planning | |
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| Management Functions | |
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| Planning | |
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| Organizing | |
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| Staffing | |
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| Directing | |
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| Controlling | |
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| Business Organizations and Ownership | |
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| Sole Proprietorship | |
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| Partnership | |
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| Corporation | |
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| Limited Liability Company | |
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| Franchise | |
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| Starting a Business | |
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| Development of a Business Plan | |
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| Executive Summary | |
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| General Company Description | |
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| Financing a Business or Raising Capital | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Financial Statements | |
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| Personal Cash Flow Statement | |
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| Income Statement | |
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| Statement of Financial Position | |
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| Balance Sheet | |
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| Sole Proprietorship | |
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| Partnership | |
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| Public Corporations | |
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| Owner's Equity | |
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| Statement of Cash Flows | |
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| Problems with Financial Statements | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Analysis of Financial Statements | |
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| Vertical Analysis | |
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| Horizontal Analysis | |
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| Ratio Analysis | |
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| Types of Business Ratios | |
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| Liquidity Ratios | |
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| Activity Ratios | |
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| Leverage Ratios | |
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| Profitability Ratios | |
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| Market Ratios | |
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| Sources of Comparative Ratios | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Profit, Profitability, and Break-Even Analysis | |
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| Efficiency and Effectiveness | |
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| Profit | |
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| Profitability | |
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| Earning Power | |
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| Break-Even Analysis | |
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| Break-Even Quantity | |
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| Break-Even Dollars | |
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| Break-Even Charts | |
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| Leverage | |
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| Operating Leverage | |
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| Financial Leverage | |
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| Bankruptcy | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Forecasting and Pro Forma Financial Statements | |
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| Forecasting | |
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| Types of Forecasting Models | |
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| Practical Sales Forecasting for Start-Up Businesses | |
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| Pro Forma Financial Statements | |
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| Pro Forma Income Statement | |
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| Pro Forma Cash Budget | |
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| Pro Forma Balance Sheet | |
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| Monitoring and Controlling the Business | |
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| Start-Up Business Costs Revisited | |
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| Gantt Chart | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Working Capital Management | |
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| Working Capital | |
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| Working Capital Management | |
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| Current Asset Management | |
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| Cash Management | |
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| Marketable Securities Management | |
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| Accounts Receivable Management | |
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| Inventory Management | |
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| Current Liabilities Management | |
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| Short-Term Debt Management | |
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| Accrued Liabilities Management | |
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| Accounts Payable Management | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Time Value of Money Part I: Future and Present Value of Lump Sums | |
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| Simple Interest | |
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| Bank Discount | |
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| Compound Interest | |
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| Rounding Errors | |
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| Effective Rate | |
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| Time-Value-of-Money Methods | |
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| Future Value of a Lump Sum | |
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| Present Value of a Future Lump Sum | |
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| Internal Rate of Return | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Time Value of Money Part II: Annuities | |
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| Future Value of an Ordinary Annuity | |
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| Future Value of an Annuity Due | |
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| Present Value of an Ordinary Annuity | |
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| Present Value of an Annuity Due | |
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| Present Value and Amortization | |
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| Amortization | |
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| Combining Lump Sum and Annuities into the Same Problem | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Capital Budgeting | |
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| Capital Budgeting | |
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| Factors Affecting Capital Budgeting | |
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| Changes in Government Regulations | |
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| Research and Development | |
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| Changes in Business Strategy | |
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| Formulating a Proposal | |
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| Costs in Capital Budgeting | |
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| Benefits in Capital Budgeting | |
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| Evaluating the Data (Techniques of Capital Budgeting) | |
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| Payback | |
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| Net Present Value | |
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| Profitability Index | |
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| Internal Rate of Return | |
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| Accounting Rate of Return | |
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| Lowest Total Cost | |
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| Making the Decision | |
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| Following Up | |
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| Taking Corrective Action | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Personal Finance | |
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| Risk | |
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| Identification of Risk Exposure | |
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| Risk Management | |
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| Life, Health, Disability, Property, and Liability Insurance | |
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| Financial Planning Goals | |
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| Investments | |
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| Cash Equivalents | |
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| Certificates of Deposit | |
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| Bonds | |
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| Stock | |
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| Mutual Funds | |
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| Real Estate | |
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| Precious Metals | |
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| Collectables | |
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| Investment Strategies | |
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| Short-Term Investment Strategies | |
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| Long-Term Investment Strategies | |
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| Pension Planning | |
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| Retirement Plans | |
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| Retirement Strategies | |
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| Retirement Strategy Examples | |
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| Estate Planning | |
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| Conclusion | |
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| Review and Discussion Questions | |
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| Exercises and Problems | |
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| Working with Spreadsheets and Calculators | |
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| Time-Value-of-Money Tables | |
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| Answers to Even-Numbered Exercises and Problems | |
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| Case Study | |
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| Glossary | |
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| Index | |