FINANCIAL MANAGEMENT
Financial management uses knowledge taken from accounting. Especially, it uses financial statements, mostly balance sheets and income statements.
In financial accounting, a balance sheet or statement of financial position is a summary of a person's or organization's balances. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year. A balance sheet is often described as a snapshot of a company's financial condition
A balance sheet permanently changes in a time. Assets include current assests and fixed assets.
DETAILED BALANCE SHEET
(.......................................... TL.)
ASSETS
I- CURRENT ASSETS
A- Liquid Assets
1-Cash
2- Cheques Received
3- Banks
4- Cheques Given and Payment Orders (-)
5- Other Liquid Assets
B- Marketable Securities
1- Sh are Certifıcates
2- Private Sector Bonds and Notes
3- Public Sector Bonds and Notes
4- Other Marketable Securities
5- Decrease in Marketable Securitics (-)
C- Trade Receivables
1- Customers
2- Notes Receivable
3- Rediscount of Notes Receivable(-)
4- Deposits And Gurantees Given
5- OtherTrade Receivables
6- Doubtful Trade Receivables
7- Provision for Doubtful Trade Recivables(-)
D- Other Receivables
1- Receivable From Shareholders
2- Receivable From Participations
3- Receivahle From Subsidiary Companies
4- Receivable From Employees
5- Other Various Receivables
6- Rediscount on OtherNotes Receivables (-)
7- Doubtful Other Receivables
8- Provision for Other Douptf'ul Receivables (-)
E- Inventories
1- Raw Material and Supplies
2- Work-in Process
3- Finished Goods
4- Merchandise (Trade Goods)
5- Other Inventories
6- Provision for Inventories (-)
7- Advances Given for Purchases
F- Contract Progress Costs
1- Contracrt Progress Costs
2- Advances Given to Sub-Contractors
G- Prepaid Expenses and Income Accurals
1- Prepaid Expenses for Future months.
2- Accrued in Come
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H- Orher Current Assets.
1- Deffered VAT
2- Deductible VAT
3- Other VAT
4- Prepaid Taxes and Funds
5- Work AdvancesAssets (-)
6- Advances to personnel
7- Inventory Shortages
8- Other Current Assets
9- Provision for Other Current Assets
TOTAL CURRENT ASSETS
II- FIXED ASSETS
A- Trade Receivables
1- Customers
2- Notes Receivable
3- Rediscount of Notes Receivable(-)
4- Deposits And Gurantees Given
5- Provision for Doubtful Trade Reccivables(-p-)
B- Other Receivables
1- Receivable From Shareholders
2- Receivable From Participations
3- Receivable From Subsidiary Companies
4- Receivable From Employees
5- Other Various Receivables
6- Rediscount on OtherNotes Receivables (-)
7- Doubtful Other Receivables
8- Provision for Other Douptf'ul Receivables
C-Financial Fixed Assets
1- Long-term Securities
2- Decrease in Value of Securities (-)
3- Participation
4- Capital Commitmens for Participation (-)
5- Decrease in Value of Participation Shere (-)
6- Subsidiaries
7- Capital Commitments for Subsidiaries (-)
8- Decrease in Value of Subsidiaries Shares (-)
D-Tangible Assets
1- Land
2- Land Improvements
3- Buildings
4- Machinery and Aquipments
5- Motor Vehicles
6- Furniture and Fixtures
7- Other Tangible Fixed Assets
8- Accumulated Depreciation (-)
9- Construction in Progress
10- Advances To Suppliers of Tangible Fixed Asses
E- Intangible Assets
1- Rights
2- Goodwill
3- Pre-Operating Expenses
4- Research and Development Expenses
5- Leasehold Improvements
6- Other Intangible Fixed Assets
7- Accumulated Amortization (-)
8- Advances To Suppliers
F- Extra Ordinary Usefull Life Assets
1- Research Expenses
2- Prepaation and Development Expenses
3- Other Extra Ordinary Usefull Life Assets
4- Accumulated Amortization (-)
5- Advances To Suppliers
G- Prepaid Expenses and Accrued Income
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1- Prepaid Expenses for Future Periods
2- Income Accruals
H-Other Fixed Assets
1- Deductible VAT In Future Periods
2- Other VAT
3- Prepaid Expenses and Funds
4-Other Fixed Assets
TOTAL LONG TERM ASSETS
TOTAL ASSETS
LIABILITIES
1- CURRENT LIABILITIES
A-Financial Liabilities
1- Bank Loans
2- Curcent Portion of Long-Term Loans
3- Curcent Maturities of Bonds and Accrued Interest
4- Bonds and Notes Issued
5- Other Securities Issued
6- Value Difference of Securities Issued (-)
7- Other Financial Liabilities
B-Trade Liabilities
1-Suppliers
2- Notes Payables
3- Rediscount on Notes Payables (-)
4- Deposits and Guarantees Received
5- Other Trade Payables
C- Other Liabilities
1- Due to Shareholders
2- Due to Participations
3- Due to Subsidiaries
4- Due to Personnel
5- Other Liabilities
6- Rediscuunt on Other Notes Payable (-)
D- Advances Received
E- Accrued Contract and Maintenance Income
1- Accrued Contract and Maintenance Income
F- Taxes Payable and Other Fiscal Liabilities
1-Taxes Payables
2- Social Security Duties Payable
3- Unpaid, Rescheduled Taxes And Duties Payable
4- Other Duties Payable
G- Provisions For Due And Expense
1- Provisions for Taxation Income And Related
2- Prepaid Income Taxes And Related Duties
3- Provisions For Employee Termination Indemnities
4- Provisions for other Depts and Iiabilities
H- Defered Income And Accrued Expenses
1- Defered Income
2- Accrued Expenses
I- Other Short-Term Liabilities
1- VAT Received
2- Other V AT
3- Head Office and Branch Curcent Accounts
4- Inventory Overages
5- Other Short Term Liabilities
TOTAL SHORT TERM LlABlLlTlES
II- LONG TERM LlABILITIES
A- Financial Liabilities
1- Bank Loans
2- Bonds Issued
3- Other Securities Issued
4- Value Difference of Securities Issued (-)
5- Other Financial Liabilities
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B- Trade Liabilities
1-Suppliers
2-Notes Payables
3- Rediscount on Notes Payables (-)
4- Deposits end Guarantees Received
5- Other Trade Payables
C- Other Liabilities
1- Due to Shareholders
2- Due to Participations
3- Due to Subsidieries
4- Due to Personnel
5- Rediscount on Other Notes Payable (-)
6- Non-Current Unpaid- Rescheduled Payables To Goverment
7- Orher Liabilities
D- Advance Received
E- Provisions For Due And Expense
1- Provision for Termination Indemnities
2- Provision for Other Debts end Expenses
F- Deferred Income And Accrued Expenses
1- Deferred Income
2- Accrued Expenses
G- Other Long-Term Liabilities
1- VAT Deferred to Following Years
2- Installation Participation
3-Other Long Term Liabilities
TOTAL LONG TERM LIABILITIES
III- SHAREHOLDERS EQUITY
A- Paid-in Capital
1-Capital
2- Un-paid Capital
B- Capital Reserves
1- Share Premium
2- Share Premium of' Cancelled Shares
3- Revaluation Fund of Tangible Fixed Asseıs
4- Revaluation Fund of Investment
5- Other Capital Reserves
C- Profit Reserves
1- Legal Reserves
2- Statutory Reserve
3- Extaordinary Reserves
4- Other Reserves
5-Special Funds
D- Retained Eamings
E- Accumulated Loss (-)
F-
Net Profıt (Loss) for the Period
TOTAL SHAREHOLDERS EQUITY
TOTAL LIABILITIES
FOOD NOTES:
Income statement, also called profit and loss statement (P&L) and Statement of Operations, is a company's financial statement that indicates how the revenue (money received from the sale of products and services before expenses are taken out, also known as the "top line") is transformed into the net income (the result after all revenues and expenses have been accounted for, also known as the "bottom line"). The purpose of the income statement is to
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show managers and investors whether the company made or lost money during the period being reported.
The important thing to remember about an income statement is that it represents a period of time. This contrasts with the balance sheet, which represents a single moment in time.
DETAILED STATEMENT OF INCOME
(................................... TL.)
A- GROSS SALES
1- Domestic Sales
2- Export Sales
3- Other Sales
B- SALES RETURNES AND ALLOWANCES(-)
I- Sales Returns (-)
2- Sales Dıscounts (-)
3- Other Deductions (-)
C- NET SALES
D- COST OF GOODS SOLD
1-Cost of Goods Sold (Product) (-)
2- ostt of Goods Sold (Merchandise) (-)
3-Cost of Services Rendered (-)
4- Cost of Sales (Other) (-)
GROSS PROFlT OR (LOSS)
E- OPERATING EXPENSES (-)
1- Research and Development Expenses (-)
2- Marketing, Selling And Distribution Expenses (-)
3- Gieneral Administration Expenses (-)
OPERATING PROFlT OR (LOSS)
F- INCOMME AND PROFIT FROM OTHER OPERATIONS
1- Divident Incomme from Affiliates
2- Divident lncomme from Subsidiaries
3- Interest lncome
4- Cominission Income
5- Provisions no Longer Required
6- Profit on Sale of Marketable Securities
7- Exchange Gains
8- Rediscount Income
9- Other Income and Profıt
G- EXPENSES AND LOSSES FROMOTHER OPERATIONS (-)
1-Commission Expenses (-)
2- Provisions (-)
3- Loss on Sale of Marketable Securities (-)
4- Exchange Losses (-)
5- Rediscount Income (-)
6- Other Income and Profıt (-)
H- FINANCIAL EXPENSES
1- Financial Expenses (Shon Term) (·)
2- Financial Expenses (Long Term) (-)
OPERATING PROFlT OR (LOSS)
I- EXTRAORDINARY REVENUES AND PROFITS
1- Previous Period Revenues and Profıts
2- Other Extraordinary Revenues and Profıts j- EXTRAORDINARY EXPENSES AND LOSSES (-)
1- Idle capacity Expenses and Losses (-)
2- Previous Period Expenses and Losses (-)
3- Other Extraordinary Expenses and Losses (-)
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PROFIT OR (LOSS) FOR THE PERIOD
K- PROVIONS FOR TAXES PAYABLE AND
OTHER STATUTORY OBLIGATIONS (-)
NET PROFIT OR (LOSS) FOR THE YEAR
WHAT ARE THE AIMS OF THE FINANCIAL MANAGERS?
Maximize the profit of a company: but this aim is critisized since if your aim is to maximize tha profit, you may sell your profit more expensive and you will get more profit marjin. Then several investors will enter the sector to share this profit. Thus, you will have more competitors and lose in long term.
The other aim is to maximize the earnings per share. But this approach ignores the risk taken by companies. If you take more risk you may increase earnings per share.
Hovewer, because of high risk, investors may sell their shares and therefore, the value of firm will decrease.
The last aim of managers is to maximize the value of firm. This is the most logical aim in terms of financial management. For example, When the firm value of firm increases
%50 percent, shareholders revenue also increases %50 percent and get capital gains.
Because at that time the value of company shares will increase in capital market.
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