Dressing Financial Statements – What Motivated Mr. Bean to Defraud Latte?
Did you know What Happened at Last Coffee Day?
Mr. Bean “dressed up” the financial statements and was caught in the fraud. But he was the CEO of Latte! So why did he commit fraud in his own company??
Any Guess?
Take a cappuccino and I will give you a hint – How was Mr. Bean’s Bonus to be decided?
Read on to know more…
Financial Ratios – Cappuccino or Latte?
A Quick Question for you!
Don the hat of a financial wiz today. What I have for you are the financials of two companies: Cappuccino and Latte – Two dot com companies (Sometimes they also make revenues ;-))
Which is better – Cappuccino or Latte? ( Hint: It’s a trick question! 😉 )
It may seem obvious that Latte is performing better (Higher the revenue, the better the performance!). Sometimes a single source of data does not speak the full story!
Creating Cash Flow Statement by Indirect Method – II
So what’s the cash with Facebook? Last time, we announced the launch of a new module on getting the cash flow statement in our financial modelling course and also discussed the procedure to create the cash flow statement. I had shared with you the template for financial statements for Facebook. I had asked you to implement the steps and create the cash flow model for Facebook!
We know that the devil is in the details. Last time we discussed the process and in this post, we would implement the cash flow statement for Facebook using the indirect method.
Creating Cash Flow Statement by Indirect Method – I
If there was a challenge in any Finance 101 course at any B School, I think Creating the Cash Flow Statement would score the max. When I was pursuing my MBA, the biggest enigma for me was to go from the Balance Sheet and Income Statement to the Cash Flow statement via the indirect route. I could never get it right!
There were two challenges, the bigger was obviously unclear concepts plus I didn’t know how to play with Excel! I have worked hard on both and let me show you, how they can be used to get the right cash flow statement in no time!
Actually the concept is simple and excel makes it run on steroids!
Reporting Scenarios using Offset
Project Managers often report financial numbers to the management. In a dynamic world, these numbers are usually based on a lot of factors that may or may not be under your control. So the top management demands that the numbers be reported as per different economic scenarios – Optimistic, Normal or Pessimistic. It is important […]
Shortcut for Long Models
Have you created models which run into 20 – 30 years? You might have noticed that navigating to the last year (the last column) is probably the most boring part (and also the most time consuming part). Excel does provide you a shortcut (Ctrl + end), but that hardly works! It’s been a while since […]
Commercial Aspects of Project Management
In 2005, fresh out of MBA School, I was put on managing an e-business transformation strategy project. It was then that realized that project management was a full time job (I always wondered before that why PMs were even paid a dime!). We created huge Project Management reports for the client, where were tracked and […]