Author Archives: randyhimself

Forecasts – Randy Dong

Finance is a game about future after all. It is more important to know how a company will do next year than how it is doing now. How do we proceed in forecasting a company’s future performance? What kind of a perspective should we stand from in a forecast? Today we will talk about the general idea of financial forecasting before we delve into the details of doing it.

Revenue-Forecasting

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Preferred vs Common – Randy Dong

 

There are two general types of stocks: preferred stocks and common stocks. Both types of stocks are counted as contributed capital to a company, which is also part of the company’s equity. In today’s post, we will analyze the difference between the two types of stocks and see what are the advantages and disadvantages in holding either type of stock.

'I have mostly conservative investments in my retirement portfolio, plus a few riskier, short-term performers tossed in as a hedge against inflation.'

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Analyzing Current Liabilities – Randy Dong

In last week’s post we talked about accounts receivable, other people owing you money. In today’s post we will discuss accounts payable, the money you owe others, and other forms of current liabilities. As we can tell from the most fundamental equation of a business, Assets = Liabilities + Equity, liabilities is a very crucial part that determines the success of a business. Current liabilities, with its critical influence of the cash flow of a company, even more so decides the “life and death” of a company’s operations.

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Accounts Receivable – Randy Dong

When a seller sells its product or service to its customers, he isn’t always paid by cash straight up. Sometimes people pay by credit and that credit won’t be turned into cash until the buyer pays their credit. The amount of sales that aren’t yet turned into cash are called accounts receivable, and in today’s blog we will look at accounts receivable.

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My first ever case assignment – Randy Dong

This past weekend I spent a lot of time working on my first case assignment from my Financial Statement Analysis class. Even though this is just the first one of the kind and there’s not much in-depth analysis yet, I felt accomplished finishing up the case assignment, because this is really close to real financial reports.

First attachment is my assignment. It includes a balance sheet, an income statement, a statement of cashflows, footnotes, and an evaluation from third-party audit companies. It also includes the questions I have to answer.

Second attachment is my work, an interpretation and analysis of the data provided and my thoughts on the company’s performance and its future.

Case Assignment 1 General Mills Inc

MGMT S-2600 Case Assignment 1 General Mills [TEMPLATE]

Recognition and Adjustment – Randy Dong

I have laid down some basics about the four financial statements in previous posts, and in this posts we are going to look at how these four financial statements interconnect and the details and subtleties in constructing these statements. The accuracy of these details are extremely important, because false statements are fraud and may inflict very serious consequences to the company.

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Introduction to Financial Statement Analysis: Statement of Cash Flows

In this blog post, we are discussing the last component of a financial statement: the statement of cash flow. As its name suggests, a statement of cash flow reports the cash inflows and outflows of a business over a period of time. Statement of cash flows, income statement, and statement of equity make up a complete record of financial activities over the same period of time, and this record is the change in balance sheets between two different points in time.

So, what can we tell from a statement of cash flows? How might that information help us?

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Introduction to Financial Statement Analysis: Statement of Equity

In the last two posts, we looked at the balance sheet and the income statement of a company. They give a direct view on the current status of a company and an overview of the company’s performance over a marked period. In this week’s post, we will look at the statement of stockholder’s equity, the sheet of information stockholders probably care the most about, because it has got to do with the dividends investors receive, the value of stock they hold, and the structure and dynamics of a company.

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Introduction to Financial Statement Analysis: Income Statement

In last week’s post, we had a brief discussion about the components and utility of the balance sheet: the piece of financial statement that directly reflects the status of a company at points in time. However, a balance sheet is certainly not the whole picture. We are interested in how the numbers on a balance sheet changes with time. An income statement records parts of these changes in numbers. It provides the details on a company’s sales and expenses through a period of time and by analyzing such information, we can know more about how efficiently a company’s operating.

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