Accounting-Based Management Principles (Made Easy)

Accounting-Based Management Principles (Made Easy)

(Financial Statement Analysis Simplified)

By:

Professor Harry Jack Smith

Smashwords Edition

PUBLISHED BY:

Prof. Harry Jack Smith

Copyright © 2013 by Professor Harry Jack Smith

Thank you for reading this Ebook. It remains the copyrighted property of the author and may not be reproduced, scanned, or distributed for any commercial or non-commercial use without permission from the author. Quotes used in reviews are the exception. No alteration of content is allowed. If you enjoyed this book, then encourage your friends to grab their own copies.

Your support and respect for the property of this author is appreciated.

This book is a work of labor and any resemblance to persons, living or dead, or places, events or locales is purely coincidental.

General Patronage Material

Many thanks to my Wife, Amy , and my Children, Renz Louise and Maria Pamela, who continue to be my inspirations for living in our hectic but enjoyable world.

Please note that I use U.S. English spelling throughout.

I hope you enjoy the story as much as I enjoyed writing it.

Photo Credit (Miles, 2011)

Table of Contents

Chapter 1 How Financial Statements Improve Your Business Decisions

Chapter 2 How to Use Financial Ratios to enhance Your Decision Making

Chapter 3 Financial Statement Analysis – Simplified

Chapter 4 How Trending Financial Statement Analysis Tools Improve Decision Making

Chapter 5 How to Effectively Set the Sales Price Computation

Chapter 6 Financial Statement Analysis – Feasibility Study Simplified

Chapter 7 Conclusion

Photo Credit (Miles, 2012)

Chapter 1

Introduction

Return to table of Contents

If you were given $ (€ ) 20,000. What business will you engage in?. ) One possible answer is to set up a grocery store. Another possible answer is a restaurant. Another possible answer is a bookstore. Another possible answer is a pharmacy. Another possible answer is book publishing business. Each person will have his or her one business type.

Photo Credit (Tungphoto, 2013)

No matter what type of business endeavor you may choose, all successful management decisions are grounded on similar basic management and accounting concepts. The purpose of this book is to pick out the most popular management and accounting-based decision tools that will increase the quality of one’s decision making activities. The author is a college professor and tutor of management, accounting, economics, statistics, human resource management, feasibility study, research, and dissertation for more than 12 years.

Your author, Professor Harry Jack Smith (pen) writes this book in order to share his expertise in management and accounting to eager readers who are current and future leaders of their own organization or community. This valuable piece of art work is meant to add the icing on the cake to the current management decision making skills of the readers. The complex relevant decision making accounting concepts, normally taught in the MBA masters courses, are simplified for those who do not have time to venture into formal MBA enrollment but need those relevant MBA concepts as soon as possible (ASAP).

Photo Credit (Thephotoh, 2009)

How Different Parties effectively use Financial Statements to enhance their business decisions

Customers

Different parties offer different reasons for using the financial or business reports. First, the current and future company customers use the financial reports to determine