Term
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Definition
CM = Sales - Variable Costs
CM = S - VC |
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Term
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Definition
MP = Contribution Margin/Sales
MP = CM/S |
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Term
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Definition
| expenses that are tied to the sale of each unit. |
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Term
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Definition
| people that are not tied directly to the cost of producing a unit — administration, salespeople, and managers, for example. |
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Term
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Definition
Contribution Margin less Period Costs.
NM = CM - PC
(Put simply, it is what the product contributes towards profits.) |
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Term
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Definition
| Emergency Loans = In the real world emergency loans do not exist. When you run out of cash, you have "a liquidity crisis", "Chapter 11", or simply "Bankruptcy" on your hands |
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Term
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Definition
WC = Current Assets - Current Liabilities
WC = CA - CL |
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Term
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Definition
CR = Current Assets/Current Liablities
CR = CA/CL =
CA =(cash+A/R+Inventory)
CL = (A/P + Current Debt) |
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Term
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Definition
DWC = Working Capital/(Sales/365)
DWC = WC/(S/365) |
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Term
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Definition
| Ability to forecast demand, build adequate inventories to satisfy demand, and yet not accumulate excessive inventory. |
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Term
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Definition
| Driven by your promo budget, creates product awareness before customers shop. If customers are not aware of the product, they will not buy it. |
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Term
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Definition
| Drive by your Sales budget. It examines the question, "How easy is it for customers to work with you during and after the sale?" |
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Term
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Definition
| The productivity of your workforce through the course of the simulation. |
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Term
| The Financial Structure category |
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Definition
| The Financial Structure of your company- its relationship between Debt and Equity. |
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Term
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Definition
L = Total Assets/Total Equity
L = TA/TE |
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Term
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Definition
| The PP&E, and they are listed on the left side of the Balance Sheet. |
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Term
| The Liabilities and Owners Equity |
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Definition
| The right side represent the people who paid for the Assets and their current stake. |
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Term
| Sides of the Balance Sheet |
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Definition
Left = Whats owned
Right = Who owns it |
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Term
| The Financial Structure of the firm |
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Definition
| The Financial structure of the firm is the relationship between Debt and Equity. |
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Term
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Definition
| Earnings Before Interest and Taxes |
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Term
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Definition
=Profits/Equity
=Profits/Assets*Assets/Equity
=ROA*Leverage |
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Term
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Definition
| The sum of all company profits. |
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Term
| Cumulative Free Cash Flow |
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Definition
| The sum of all the Free Cash Flows since you took over management of the company. |
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Term
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Definition
Market Cap. = Stock Price*Shares Outstan..
The current value of your stock price times shares outstanding |
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Term
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Definition
EPS = Profits/Shares Outstanding
EPS = P/S.O. |
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