Q1. What is the percentage increase for Wal-Mart revenue from 12 months ending 2009-01-31 compared with 12 months ending 2008-01-31? In other words, what was the percentage change for a year (January 31, 2009 compared with January 31, 2008)?
A.1 The construction of your spreadsheet is very easy.
First you went to "Google Finance" on the internet and searched for Wal-Mart.
-> you selected the "income Statement" tab;
-> you selected the "Annual Data" tab to show the annual revenues
Second, you then opened MS Excel.
Third, you copied the Income Statement of Wal-Mart from Google Finance and pasted it into MS Excel. Cool you thought, "but I cannot read what is in some of the columns". You became very annoyed.
Fourth, you widened the columns in order for you to read the titles in your spreadsheet.
Fifth, you added a new column to far right and named it something like "% increase".
Sixth, you fixed yourself a cup of tea, chilled, and came back to your computer.
Seventh, you thought to yourself "how the heck am I to come up with this formula?". One way of measuring the % increase, that came to you from sipping your tea, is to take the difference between the two numbers (columns), and then dividing it by the first one (column). You said to yourself, what I need to do is to translate this into a MS excel formula, and then just copy it and paste it in the "% increase" column.
Eighth, you developed a formula like:
=((B1-C1/C1)) formatting your cell for percentages 2 decimal points
Row 1 Column B = 12 months ending 2009-01-31 is cell reference B1
Row 1 Column C= 12 months ending 2008-01-31 is cell reference C1
* B1 equals $401,244.00
* C1 equals $374,307.00
The "% increase" column then portrayed the answer of 7.20%.
Ninth, you copied the formula down into the last column of the Income Statement of Wal-Mart.
Tenth, you admired how intelligent and insightful you were and how you can figure out anything in finance. You also thought that this was too easy.
Tuesday, September 29, 2009
FINAL QUESTIONS CLARIFICATIONS
Q1. What is meant by the term "finance" as it was used in this course?
KEEP IN MIND THAT A ONE TO TWO SENTENCE ANSWER WILL BE DEEMED AS AN UNDERGRADUATE RESPONSE. YOUR ANSWER SHOULD TELL ME WHAT YOU LEARNED IN THIS COURSE. SEE Merrill Lynch Response Center. How to Read a Financial Report.{The Google Sites page).
1.1 Define the term "financial statement" and, provide a copy of a financial statement from a company (a printout of a balance sheet and an income statement from Google Finance. Yes, the terms have to be defined and described).
NOTE THAT YOU WERE EMAILED A COPY OF "Merrill Lynch Response Center. How to Read a Financial Report". THAT OR THE BOOK WILL HELP YOU.
1.2 What is meant by the term "historic perspective" as it relates to a financial statement? Provide a copy of such a perspective from Google Finance.
-> IN GOOGLE FINANCE, SELECT YOUR FIRM (NEXT TO THE "GET QUOTES" BUTTON AT THE TOP LEFT).
-> TYPE IN THE NAME OF THE FIRM THAT YOU WANT TO GET THE FINANCIAL STATEMENT FOR.
-> LOOK AT THE LEFT COLUMN CALLED "COMPANY" AND SELECT "FINANCIALS"
-> SELECT THE "INCOME STATEMENT" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
->SELECT THE "BALANCE SHEET" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
->SELECT THE "CASH FLOW" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
-> NOW THAT YOU HAVE SOME HISTORICAL INFORMATION ON THE COMPANY'S BALANCE SHEET, INCOME STATEMENT AND CASH FLOW, STATE HOW, FROM YOUR PERSPECTIVE, HAS THE COMPANY PERFORMED? THIS IS NOT A TRICK QUESTION. YOU MUST TAKE THE FINANCIAL DATA AND INTERPRET IT FROM A FINANCIAL PERSPECTIVE IN PLAIN ENGLISH.
-> HOW WOULD YOU EXPLAIN THE COMPANY'S PERFORMANCE FROM A FINANCIAL PERSPECTIVE? DO NOT EXCEED A PAGE.
1.3.1 Present a Simple Balance Sheet as depicted in Figure 2-1
->FROM YOUR FINANCIAL STATEMENT, FILL IN THE TITLES AND TOTALS FROM THE BALANCE SHEET WITHIN THE BOXES TO MAKE THE BALANCE SHEET EQUATION "TOTAL ASSETS = TOTAL LIABILITIES' FOR THE MOST CURRENT AS OF DATE.
1.3.2 Depict the % of total sales as depicted in Table 2-2
->CALCULATE FROM SPREADSHEET
Q2. What is an investor, an investment and where does an investment appear within the financial statements?
-> INCOME STATEMENT ON YOUR SPREADSHEET.
-> SELECT "3 MONTHS ENDING" (COLUMNS) FOR:
- THE MOST CURRENT DATE - A YEAR PRIOR TO THE CURRENT DATE
-> CALCULATE YOUR PERCENTAGES. NOTE THAT YOU WERE NOT ASKED TO "INTERPRET" ANYTHING.
Q2.1 How do investors use financial statements (e.g. what is some of the information that investors "glean" from financial statements?
-> TIE YOUR ANSWER TO THE SPREADSHEET YOU HAVE CREATED TO PROVIDE 'REAL WORLD CONTEXT".
Q2.2 Where (be specific) would an investor find this information from the financial statement that you used from Google Finance in the prior questions?
->YOU ANSWER SHOULD REFERENCE YOUR SPREADSHEET.
Q3. From the financial statements you are using from Google Finance in the prior questions, what kind of debt is the company using?
-> FROM SPREADSHEET.
Q5.1 For the company whose financial statement you are using from Google Finance for the prior questions, how does its revenues relate to its operating costs and profits?
-> THE SPREADSHEET SHOULD IDENTIFY THIS. IF YOUR PRIOR ANSWER IS TOO 'TEXTBOOK" THEN YOU WILL HAVE TO DESCRIBE THIS IN GREATER DETAIL FOR THE COMPANY WHOSE FINANCIAL STATEMENT YOU ARE USING.
Q6.1 Where, in a company's financial statement, does the "rating" affect the company?
-> THE SPREADSHEET SHOULD IDENTIFY THIS. IF YOUR PRIOR ANSWER IS TOO 'TEXTBOOK" THEN YOU WILL HAVE TO DESCRIBE THIS IN GREATER DETAIL FOR THE COMPANY WHOSE FINANCIAL STATEMENT YOU ARE USING.
Q7. If an individual earns $25,000 a year and wants to save 5% of her pay, what would be the fiscal impact of opening a 401(k) versus and non-401(k) savings instrument?
-> PUT YOU ANSWERS ON A SPREADSHEET WITH THE PROPER FORMULAS AS THE DOCUMENT THAT WAS EMAILED TO YOU CONTAINS.
KEEP IN MIND THAT A ONE TO TWO SENTENCE ANSWER WILL BE DEEMED AS AN UNDERGRADUATE RESPONSE. YOUR ANSWER SHOULD TELL ME WHAT YOU LEARNED IN THIS COURSE. SEE Merrill Lynch Response Center. How to Read a Financial Report.{The Google Sites page).
1.1 Define the term "financial statement" and, provide a copy of a financial statement from a company (a printout of a balance sheet and an income statement from Google Finance. Yes, the terms have to be defined and described).
NOTE THAT YOU WERE EMAILED A COPY OF "Merrill Lynch Response Center. How to Read a Financial Report". THAT OR THE BOOK WILL HELP YOU.
1.2 What is meant by the term "historic perspective" as it relates to a financial statement? Provide a copy of such a perspective from Google Finance.
-> IN GOOGLE FINANCE, SELECT YOUR FIRM (NEXT TO THE "GET QUOTES" BUTTON AT THE TOP LEFT).
-> TYPE IN THE NAME OF THE FIRM THAT YOU WANT TO GET THE FINANCIAL STATEMENT FOR.
-> LOOK AT THE LEFT COLUMN CALLED "COMPANY" AND SELECT "FINANCIALS"
-> SELECT THE "INCOME STATEMENT" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
->SELECT THE "BALANCE SHEET" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
->SELECT THE "CASH FLOW" TAB. COPY AND PASTE IT INTO AN MS EXCEL SPREADSHEET AND FORMAT IT AS APPROPRIATE.
-> NOW THAT YOU HAVE SOME HISTORICAL INFORMATION ON THE COMPANY'S BALANCE SHEET, INCOME STATEMENT AND CASH FLOW, STATE HOW, FROM YOUR PERSPECTIVE, HAS THE COMPANY PERFORMED? THIS IS NOT A TRICK QUESTION. YOU MUST TAKE THE FINANCIAL DATA AND INTERPRET IT FROM A FINANCIAL PERSPECTIVE IN PLAIN ENGLISH.
-> HOW WOULD YOU EXPLAIN THE COMPANY'S PERFORMANCE FROM A FINANCIAL PERSPECTIVE? DO NOT EXCEED A PAGE.
1.3.1 Present a Simple Balance Sheet as depicted in Figure 2-1
->FROM YOUR FINANCIAL STATEMENT, FILL IN THE TITLES AND TOTALS FROM THE BALANCE SHEET WITHIN THE BOXES TO MAKE THE BALANCE SHEET EQUATION "TOTAL ASSETS = TOTAL LIABILITIES' FOR THE MOST CURRENT AS OF DATE.
1.3.2 Depict the % of total sales as depicted in Table 2-2
->CALCULATE FROM SPREADSHEET
Q2. What is an investor, an investment and where does an investment appear within the financial statements?
-> INCOME STATEMENT ON YOUR SPREADSHEET.
-> SELECT "3 MONTHS ENDING" (COLUMNS) FOR:
- THE MOST CURRENT DATE - A YEAR PRIOR TO THE CURRENT DATE
-> CALCULATE YOUR PERCENTAGES. NOTE THAT YOU WERE NOT ASKED TO "INTERPRET" ANYTHING.
Q2.1 How do investors use financial statements (e.g. what is some of the information that investors "glean" from financial statements?
-> TIE YOUR ANSWER TO THE SPREADSHEET YOU HAVE CREATED TO PROVIDE 'REAL WORLD CONTEXT".
Q2.2 Where (be specific) would an investor find this information from the financial statement that you used from Google Finance in the prior questions?
->YOU ANSWER SHOULD REFERENCE YOUR SPREADSHEET.
Q3. From the financial statements you are using from Google Finance in the prior questions, what kind of debt is the company using?
-> FROM SPREADSHEET.
Q5.1 For the company whose financial statement you are using from Google Finance for the prior questions, how does its revenues relate to its operating costs and profits?
-> THE SPREADSHEET SHOULD IDENTIFY THIS. IF YOUR PRIOR ANSWER IS TOO 'TEXTBOOK" THEN YOU WILL HAVE TO DESCRIBE THIS IN GREATER DETAIL FOR THE COMPANY WHOSE FINANCIAL STATEMENT YOU ARE USING.
Q6.1 Where, in a company's financial statement, does the "rating" affect the company?
-> THE SPREADSHEET SHOULD IDENTIFY THIS. IF YOUR PRIOR ANSWER IS TOO 'TEXTBOOK" THEN YOU WILL HAVE TO DESCRIBE THIS IN GREATER DETAIL FOR THE COMPANY WHOSE FINANCIAL STATEMENT YOU ARE USING.
Q7. If an individual earns $25,000 a year and wants to save 5% of her pay, what would be the fiscal impact of opening a 401(k) versus and non-401(k) savings instrument?
-> PUT YOU ANSWERS ON A SPREADSHEET WITH THE PROPER FORMULAS AS THE DOCUMENT THAT WAS EMAILED TO YOU CONTAINS.
Monday, September 28, 2009
Question on Final
Professor Rainey:
So essentially there are 18 total questions. Is there spreadsheets we need? Also, what attachment are you referring to being provided need it to answer one of the questions in Q2?
-Quinn
So essentially there are 18 total questions. Is there spreadsheets we need? Also, what attachment are you referring to being provided need it to answer one of the questions in Q2?
-Quinn
Sunday, September 27, 2009
FINAL QUESTIONS
Please have these on a paper submitted by the last class.
Q1. What is meant by the term "finance" as it was used in this course?
1.1 Define the term "financial statement" and, provide a copy of a financial statement from a company (a printout of a balance sheet and an income statement from Google Finance. Yes, the terms have to be defined and described).
1.2 What is meant by the term "historic perspective" as it relates to a financial statement? Provide a copy of such a perspective from Google Finance.
1.3 From the financial statement that you have provided in Google Finance:
1.3.1 Present a Simple Balance Sheet as depicted in Figure 2-1
1.3.2 Depict the % of total sales as depicted in Table 2-2
Q2. What is an investor, an investment and where does an investment appear within the financial statements?
Q2.1 How do investors use financial statements (e.g. what is some of the information that investors "glean" from financial statements?
Q2.2 Where (be specific) would an investor find this information from the financial statement that you used from Google Finance in the prior questions?
Q3. What is "debt" and what are the characteristics of debt?
Q3.1 What are the different types of debt?
Q3. From the financial statements you are using from Google Finance in the prior questions, what kind of debt is the company using?
Q4. What is meant by the term "financial planning and control"?
Q5. What is meant by the term "operating break-even analysis"?
Q5.1 For the company whose financial statement you are using from Google Finance for the prior questions, how does its revenues relate to its operating costs and profits?
Q6. What are the names of the three major rating agencies?
Q6.1 Where, in a company's financial statement, does the "rating" affect the company?
Q7. If an individual earns $25,000 a year and wants to save 5% of her pay, what would be the fiscal impact of opening a 401(k) versus and non-401(k) savings instrument?
Q1. What is meant by the term "finance" as it was used in this course?
1.1 Define the term "financial statement" and, provide a copy of a financial statement from a company (a printout of a balance sheet and an income statement from Google Finance. Yes, the terms have to be defined and described).
1.2 What is meant by the term "historic perspective" as it relates to a financial statement? Provide a copy of such a perspective from Google Finance.
1.3 From the financial statement that you have provided in Google Finance:
1.3.1 Present a Simple Balance Sheet as depicted in Figure 2-1
1.3.2 Depict the % of total sales as depicted in Table 2-2
Q2. What is an investor, an investment and where does an investment appear within the financial statements?
Q2.1 How do investors use financial statements (e.g. what is some of the information that investors "glean" from financial statements?
Q2.2 Where (be specific) would an investor find this information from the financial statement that you used from Google Finance in the prior questions?
Q3. What is "debt" and what are the characteristics of debt?
Q3.1 What are the different types of debt?
Q3. From the financial statements you are using from Google Finance in the prior questions, what kind of debt is the company using?
Q4. What is meant by the term "financial planning and control"?
Q5. What is meant by the term "operating break-even analysis"?
Q5.1 For the company whose financial statement you are using from Google Finance for the prior questions, how does its revenues relate to its operating costs and profits?
Q6. What are the names of the three major rating agencies?
Q6.1 Where, in a company's financial statement, does the "rating" affect the company?
Q7. If an individual earns $25,000 a year and wants to save 5% of her pay, what would be the fiscal impact of opening a 401(k) versus and non-401(k) savings instrument?
Monday, September 21, 2009
REQUIREMENTS OF A "TEAM DELIVERABLE"
"Team Deliverables" require the following to be complete enough for me to grade them:
First, the MS Excel Spreadsheet (that is supposed to be downloaded in order to answer the questions) is supposed to be completed.
Second, the "questions" (in the Syllabus and even in the Grade Status Report) are supposed to be completed.
Third, the MS Excel spreadsheet is supposed to be converted into a Google spreadsheet and shared with your Team before being shared with me.
Fourth, the answers to the Team Deliverable questions (they are listed in the Syllabus and on the Grade Status Reports) are supposed to be converted from a MS Word to a Google document and shared with your Team before being shared with me.
Fifth, I need a copy of the "Revision History" for the Google Document and Google Spreadsheet.
As I stated at the last lecture, incomplete deliverables will not be graded. The reason for use collaborative software (Google Docs and Google Spreadsheet) is for you to share your work with your team before it is submitted, allowing them to revise or review it so that when any of the above is not present, your Team informs you instead of me.
First, the MS Excel Spreadsheet (that is supposed to be downloaded in order to answer the questions) is supposed to be completed.
Second, the "questions" (in the Syllabus and even in the Grade Status Report) are supposed to be completed.
Third, the MS Excel spreadsheet is supposed to be converted into a Google spreadsheet and shared with your Team before being shared with me.
Fourth, the answers to the Team Deliverable questions (they are listed in the Syllabus and on the Grade Status Reports) are supposed to be converted from a MS Word to a Google document and shared with your Team before being shared with me.
Fifth, I need a copy of the "Revision History" for the Google Document and Google Spreadsheet.
As I stated at the last lecture, incomplete deliverables will not be graded. The reason for use collaborative software (Google Docs and Google Spreadsheet) is for you to share your work with your team before it is submitted, allowing them to revise or review it so that when any of the above is not present, your Team informs you instead of me.
Sunday, September 20, 2009
Chapter 12 & 15
I was wondering how do I do the chapter essentials if there isnt a question being asked. I have gone through the whole chapter and still havent figured out what Im suppose to do for the assignment. The chapters that I am having problems with is chapter 12 and 15.
Friday, September 18, 2009
FYI: CALCULATORS
As this is an Introductory course that is intended to expose you to finanancial management issues, there is one more tool to have in your career arsenal (careers can only end when you cease to exist) - "Cool Math - Online Math and Financial Calculators". The next time that you are asked a financial or mathematical question, go here.
Wednesday, September 16, 2009
FYI: DIVIDEND POLICY
A lot of people have come to the realization that teens should become more exposed to finance. A really cool site that you can refer them to is "Teen Analyst". For example, the site's glossary provides a definition of "dividend policy" http://www.teenanalyst.com/glossary/d/dividendpolicy.html.
As a lot of our discussion at last evening's lecture related to topics like "mutuals", please note that this site also contains 'tabs' on:
As a lot of our discussion at last evening's lecture related to topics like "mutuals", please note that this site also contains 'tabs' on:
- Investing
- Stocks
- Bonds
- Mutual Funds
- Biz
- Credit
- Career
- College
- Economics
- Tax
CONSIDER OBTAINING "BOARD" EXPERIENCE
As part of last evening's lecture, I stated that you should consider serving on a non-profit board. Two items to read:
http://nonprofit.about.com/od/volunteers/bb/serveboard.htm - "Before You Serve On a Non-Profit Board." I find that people with unimpressive experiences on non-profit boards did not do any research before they joined. Like everything else, you have to take a look at certain things about the board (and ask the board members of the existing board questions) before you join. I typically advise people to ask for a copy of the minutes of the last board meeting. Minutes that are not current, lack committee reports, show discussion and no action are signs of what you may be jumping into.
http://www.boardnetusa.org/public/home.asp - "Boardnet USA™". Waiting for people to ask you to serve on a board is like waiting for people to ask you to apply for a job. If you do not seek what you want, then you will probably short-change yourself by missing opportunities. I recommend that you consider Boardnet™ because:
http://nonprofit.about.com/od/volunteers/bb/serveboard.htm - "Before You Serve On a Non-Profit Board." I find that people with unimpressive experiences on non-profit boards did not do any research before they joined. Like everything else, you have to take a look at certain things about the board (and ask the board members of the existing board questions) before you join. I typically advise people to ask for a copy of the minutes of the last board meeting. Minutes that are not current, lack committee reports, show discussion and no action are signs of what you may be jumping into.
http://www.boardnetusa.org/public/home.asp - "Boardnet USA™". Waiting for people to ask you to serve on a board is like waiting for people to ask you to apply for a job. If you do not seek what you want, then you will probably short-change yourself by missing opportunities. I recommend that you consider Boardnet™ because:
- Over 12,000 candidates and nonprofit boards are currently using boardnetUSA™.
- Nonprofit boards using boardnetUSA™ oversee total operating budgets in excess of $3.4 Billion.
- 8 of 10 of users would recommend boardnetUSA™ to a friend for their board connecting needs.
- 88% of users would use boardnetUSA™ again.
- 90% of board members connected through boardnetUSA™ have made financial contributions to the nonprofit they joined.
- Over 85% of users feel boardnetUSA™ connected them with a board or candidate that they would not have otherwise encountered.
Monday, September 14, 2009
Extra Credit Assignment
What do you do if not all the member(s) in your team want to participate in the extra credit assignment?
Google Finance Assignment 1 - STRA versus DV
Your team will look at STRA.
Q1. Who is STRA?
Q2. What is NASDQ and what is their relationship to STRA?
Q3. What is Dow?
Q4. What is S& P 500?
Q5. What is CECO?
Q6. What is COCO?
Q7. Wgat is BPI?
Q8. What is APOL>
Q9. what is DV?
Q10. Provide a graph of how STRA compared with DV on stock value for at least a two day period in September.
Q1. Who is STRA?
Q2. What is NASDQ and what is their relationship to STRA?
Q3. What is Dow?
Q4. What is S& P 500?
Q5. What is CECO?
Q6. What is COCO?
Q7. Wgat is BPI?
Q8. What is APOL>
Q9. what is DV?
Q10. Provide a graph of how STRA compared with DV on stock value for at least a two day period in September.
SHARE YOUR DOCUMENTS WITH YOUR TEAMMATES
From time to time members of your Teams are sending me documents that they are assigned to before they share them with the Team. This defeats the concept of "collaboration". I truly expect that each Team will develop an "internal control review" mechanism whereby someone on the Team (hopefully all of the Team members) will review the document BEFORE it is sent to me.
From the time that this is posted {yes, I notice not many of you reading or posting things on this blog}, I am no longer going to accept assignments without seeing the Revision history. It is the only way that I can insure that there is at least an "attempted collaboration".
For tomorrow evening's lecture, be prepared to provide an example of the term "INTERNAL CONTROL".
From the time that this is posted {yes, I notice not many of you reading or posting things on this blog}, I am no longer going to accept assignments without seeing the Revision history. It is the only way that I can insure that there is at least an "attempted collaboration".
For tomorrow evening's lecture, be prepared to provide an example of the term "INTERNAL CONTROL".
Tuesday, September 1, 2009
chapter 5 Essentials
In the Chapter 5 Essentials, do we choose a questions or do we do answers all the questions?
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