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Principles of Finance Videos 166 videos

Principles of Finance: Unit 1, Company Formation, Structure, Inception
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How is a company... born? Can it be performed via C-section? Is there a midwife present? Do its parents get in a fight over what to name it? In thi...

Principles of Finance: Unit 1, Intro: Company Formation, Structure, and Inception: Unit Intro
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Company Formation, Structure, and Inception: Unit Intro. Sorry, Leo DiCaprio fans—we're not going to be breaking down the plot of Inception. We'r...

Principles of Finance: Unit 1, Alex, That’s Finance Potpourri for $500
67 Views

Okay, so you want to be a company financial manager. It's basically up to you to make money for the shareholders. It would also be swell if you mad...

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Principles of Finance: Unit 3, Cash Flow From Investing Activities 13 Views


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Description:

What are cash flows from investing activities? And we're talking about investing in your own company here. Not putting $2 on Runs With a Limp to Place.

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Transcript

00:00

Principles of finance Ah la shmoop cash flow from investing

00:05

activities All right Remember that investing in this sense means

00:09

investing in one's own company right back to the filings

00:14

with the first lines A great example Purchases of tools

00:17

die and molds different kind of die there Totally spot

00:22

on for doll making companies Yeah It's pretty obvious that

00:26

while they need these things and that they should own

00:29

them since this is pretty much their core business Well

00:31

the company burned sixty nine million dollars buying them in

00:34

this period and they will likely not last forever So

00:37

you'd look for the company to depreciate their value over

00:41

some logical period of time All right Well the next

00:44

lines forty two million dollars for other property plant equipment

00:47

Well wonder what that could be Plastic hair A barbie

00:50

mobile testing facility Maybe barbie blue to write Maybe not

00:54

Well whatever the case they burned forty two million bucks

00:57

buying other peopie any in this reporting period So then

01:00

we see thirty three million dollars has payments for acquisitions

01:04

Well that's Interesting Wonder what company they bought and note

01:08

that this is listed in investing category not the financing

01:11

Category Why Well because they're buying things directly for the

01:15

operations of the company It was an acquisition of an

01:19

operating thing not an acquisition of something solely for the

01:23

financial management of the company like the acquisition of the

01:26

company's own stock because while they thought their stock was

01:29

cheap all right well the next lines a gain of

01:31

sixteen million dollars from foreign currency Edging the dollar was

01:35

relatively strong against the brexit ing europe and an imploding

01:39

latin america and a dying middle east under cheap oil

01:42

panes well earned So they made a cash game of

01:45

sixty million dollars from whoever bet along the u s

01:48

dollar in january of two thousand sixteen was their gains

01:51

on foreign currency trades That's not normally the domain of

01:54

a plastic doll making company but they have to note

01:57

it when they get lucky And yeah good job Give

02:00

that gala freak All right ignore other again and you

02:03

get to net cash flows used for investing activities as

02:08

another big fat loss of one hundred twenty four million

02:10

bucks Ouch When will the bleeding stop and it's worth

02:13

noting here that they burned two hundred forty million dollars

02:16

From operations and just burned another one hundred twenty four

02:19

million from investing All right well in total thus far

02:22

in the first six months here of two thousand sixteen

02:25

mattel has burned three hundred sixty four million dollars The

02:29

titanic appears to be sinking We can hear a celine 00:02:33.358 --> [endTime] dion right now

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