Area of uses of funds

- Repayment of long-term loans
- Purchase of fixed assets
- Payment of cash dividend
- Decrease in liability or equity
- Increase in working capital
- Purchase of long-term investment.

Source of cash

- Increase in liability or equity
- Funds from operations
- Issue of shares and debentures
- Sales of fixed and long term investment
- Decrease in working capital
- Income from investment.

Importance of Financial Statement

- Historical record
- Course of action
-Reliable financial information-economic resources and obligations.
- Estimating the earnings potential of the enterprise.
- Providing information about economic resources and obligations.
etc.

The statement of Retained Earning

A statement reporting the change in the firm's retained earnings as the result of the income generated and retained during the year. The balance sheet figure for retained earnings is the sum of the earnings retained for each year the firm has been in business. Retained earnings are used to expand the business but not used for the payment of dividends or anything else.

The Balance sheet

The balance sheet is that financial statement which shows financial position of a firm at a specific point of time.

Income statement

The income statement is also known as profit and loss account. It presents the result of business operations during a specified period of time such as, a quarter of a year. In other words, it summarizes the firm's revenues and expenses over an accounting period.

Common size statement

Common size statement is also known as common size analysis. It is another technique of analyzing the items of financial statements on relative terms. This technique is based  on the calculation of the percentage of every item in the income statements and balance sheets for past several years. It helps to check the performance trend of each item during the period under analysis.
The common size analysis is carried out for a period of one or more years. The income statement items are divided by total assets and expressed as a percentage of total assets. These percentages calculated in the same manner for the industry, and the competitors. Thus, the comparison shows the company's performance relative to industry, competitors as well as compared to its own past record.

Finance and Accounting

The firm's finance (treasurer) and accounting (controller) activities are closely related. Accounting is concerned with the recording, reporting and measuring of business transactions. Using a widely accepted double-entry book-keeping system, accounting provides data about the firm's past, present and future activities. Finance uses these data as an important input to the decision making process. Thus, an outcome of accounting is an important input in financial decision making.
Indeed, it is difficult to distinguish between financial management and accounting. Due to the use of same type of terminologies in both subjects, it is difficult to differentiate accounting from finance. In small firms the controller ( chief accountant) often carries out the finance functions and in large firms too accountants are involved in various finance activities. 

Stockholders Versus Creditors

An agency problem also exists between stockholders and creditors. There is conflict in the interest of stockholders and creditors. Creditors provide certain portion of capital to business firm and receive a fixed interest as return. Creditors do not want to take high risk. They always oppose high risk because they do not receive additional return for taking high risk. Creditor's interest is to earn a fixed return on their investment and recover their capital upon maturity. On the other side, stockholders emphasize on maximizing the value of their investment by taking high risk. Thus, stockholders and creditors want to fulfill their diverse interest from the same business firm.
This problem is generally solved by providing higher risk premium to creditors form taking higher level of risk. Risk premium can be provided by using risk adjusted market interest rate, and creditors are compensated for taking higher level of risk.

Agency Problem

An agency relationship is a contract under which one or more people hire another person to perform some service and delegate decision making authority to that agent. Within the financial management framework, agency relationship exists 1) between stockholders and managers, and 2)between stockholders and creditors.
A potential conflict of interest that can arise between 1) stockholders and managers and 2) stockholders and creditors is called agency problem.

1) Stockholders versus managers
Stockholders are the real owners of the corporation. There are large number of stockholders in a big corporation and they stay at far distant places inside and outside the country. In this condition, it is almost impossible to participate all the stockholders in regular business activities. To perform regular business activities, a management team is formed by the stockholders. Therefore, managers are the agents of the stockholders. There is principal-agent relationship between stockholders and managers. managers are supposed to work in the best interest of the stockholders. But managers of a large corporation have a great deal of autonomy, so they may not work for the stockholders' wealth maximization. Some have argued that the managers of a large and well established corporation can work to provide just a fair and reasonable rate of return and then the remainder of the resources and efforts may be mobilized to fulfil their life style at the cost of stockholders. Their main concern is present benefit and long run survival. They do not take risky ventures which may provide higher rate of return to stockholders. They emphasize only those projects that generate moderate level of profit. One reason of not taking risky venture is that managers do not receive a fair share of compensation out of the value they generate for the risk they take.

Another reason to avoid high risk is that the impact of negative results to management is more serious than stockholders. The risk of managers can't be diversified as the risk of stockholders. Their managerial skill is limited to one company. If things go wrong, they are responsible and can lose their jobs. On the other hand, the risk of stockholders can be well diversified by investing their fund making a portfolio of different stocks of different business firms. If a business firm goes into loss, the impact of this loss is not so serious to stockholders. it can be compensated from the profit of another business firm in which they have invested their funds. Thus, there is conflict in the interest of stockholders and managers. Such type of agency problems can be solved in the following ways:
- Provision of cash kind incentives to managers,
- Provision of stock option and stock bonus,
- Limiting managerial autonomy,
- Setting up a monitoring unit,
- Reorganization of the managerial structure in such a way that the actions of managers are automatically verified,
- Threat of takeover,
- Threat of firing,
- Competition, and
- Fear of career damage.

The Economic Environment

Market price of the common stock is not affected only by the projected EPS, timing of the earning streams, riskiness of the projected earnings, use of debt and dividend policy. Stock prices are also influenced by different types of external factors. Mainly following four external factors influence the stock prices:
1. External constraints
2. Strategic policy decisions controlled by management
3. General level of economic activity and corporate taxes
4. Stock market conditions.

Management makes a set of long run strategic policy decisions working within the set of external constraints. Such external constraints are antitrust laws, environmental regulations, product and work place safety regulations, employment practices rules, federal reserve policy, international developments etc. Thus, management makes different types of strategic policy decisions like types of product or services produced, production method used, relative use of debt financing, dividend policy etc. under the control of external constraints. These strategic policy decisions, level of economic activity and corporate taxes influence in expected profitability, timing of cash flows and degree of risk. Finally, stock prices are affected by expected profitability, timing of cash flows, degree of risk and stock market condition.

Profit Maximization and Stock Price

Does profit maximization help to maximize stock price? The general belief is that the maximization of profit increases stock prices and argues higher firm value. But, it is not always true. Short term profit can be maximized  but the long term effect of such strategy can be quite contrary to stock price maximization. For example, short-term profit can be maximized by reducing research and development expenses and other expenses but this can have long term negative impacts. It is important to consider how profit maximization affects the factors that influence the stock price. The factors that generally have effect on stock price are:
- Earning per share
- Level of risk
- Timing of earnings and the present value of future cash inflows
- Financial leverage
- Dividend policy, and
- New investment

Maximization of profit and stock price may not coincide in all ccases. Profit may be maximized but it may not increase stock prices. Therefore, it is necessary to assume that profit maximization does not necessarily contribute to stock price.

Profit maximization

In the conventional theory of firm, the major objective of a firm is to maximize profits. Maximization of profit simply refers to the maximization of rupee income of the firm. Under the profit maximization objective, the financial manager takes only those actions that are expected to contribute to the firm's overall profits. Corporations commonly measure profits in terms of earning per share, which represent the amount earned during the accounting period on each outstanding share of common stock.

The conventional theory of the firm depends profit maximization assumptions on the following grounds:
- only those firms survive in the long run in a competitive market which are able  to make a reasonable amount of profit.
-Profit maximization assumption is a time-honored objective of a firm, and evidence against this objective is not conclusive.
-Profit maximization objective has been found extremely accurate in predicting certain aspect of firm's behaviour and trends.
- Though not perfect, profit, profit is the most efficient and reliable measure of the efficiency of a firm. It is also the source of internal finance.
-Under the condition of competitive market, profit can be used as a performance evaluation criterion, and profit maximization leads to efficient allocation of resources.

Although profit maximization has been the costly widely known objective of a business firm, some theorists have raised doubt on the validity of this objective. They have criticized the profit maximization objective on the following grounds:
-The profit maximization objective ignores the timing of returns. It equates a rupee received today with a rupee received one year later.
-Profit maximization goal dies not consider the cash flows available to stockholders. Owners receive cash flow either in the form of cash dividends paid to them or the proceeds from selling their shares for a higher price than initially paid. A greater EPS does not necessarily mean that a firm's board of directors will decide to increase dividend payments.
-Profit maximization goal ignores the element of risk associated with the expected earning streams.
- The profit maximization objective of the firm has greater relevance to short run. In long run, a firm can not service with this objective.
-A firm with this objective may involve in unfair practices to maximize profit.
-The term "profit" is vague. Profit may mean different things to different people. It is not clear whether it is before tax or after tax profit, short run or long run profit and total corporate profit or earning per share.

Cash Flow Statement

A Statement of changes in financial positions on cash basis is commonly known as the cash flow statement. The statement of cash flow is designed to show how the firm's operations have affected its liquidity as measured by its cash flows and to show the relationships among cash flows from operating, investing and financing activities. Hence, it indicates the sources and uses of cash.

Goal of the Corporation

Stockholders are the owners of a corporation. They purchase stocks because they want to earn good return on their investment without undue risk exposure. Stockholders select directors who then hire managers to run the corporation on a day-to-day basis. Managers are supposed to be working on behalf of stockholders. So, financial managers need to know what are the major objectives of a firm's owners. Stockholders want to maximize their value of investment in a corporation. So, the primary goal of the corporation is to maximize stockholder's wealth. But many people believe that the owner's objective is always to maximize profit.

Function of Financial Management

Initially, the functions of financial management was limited upto the collection of funds. But, the area of finance functions has expanded now. As business activities continued to grow in all developed and newly industrialized countries, the functions of financial management have also been duly expanded. Now, it covers a wide area of business operation including management of financing, investment, hedging, trading etc. The basic functions of financial management are as follows:
1. Financial planning and controlling
2. Financial statement analysis
3. Raising capital
4. Working capital management
5. Capital budgeting
6. Investment management
7. Options and futures
8. Cost of capital analysis
9. Capital structure analysis
10. Dividend policy.

Beside these basic corporate financial functions, financial management is also involved in specialized financial issues, such as manager, corporate restructure, foreign exchange management and international risk management.

Dividend policy

The management of the corporation has to decide about how much of current earnings to pay ourt as dividends rather than to retain for reinvestment in the firm. Stock price is affected by dividend paid to stockholders from the firm's earning. It is also affected by the growth in EPS that results from re-investment of earning into the firm.
Thus stock price is also affected by the dividend policy adopted by a firm. A firm should follow optimal dividend policy that can maximize the market price of stocks.

Meaning of Financial Management

Financial management is an integral part of overall management. it is concerned with the management of financial affairs of financial or non-financial, private or public, large or small and profit seeking or non-profit seeking interprised. It is that managerial activity which is mainly concerned with the acquisition and proper utilization of funds. It involves on investment, financing and dividend decisions.

Stocks

Preferred stock
preferred stock is hybrid in nature. It is similar to bond in some respects and common stock in some other respects. Like bonds, preferred stock is also a fixed income security. Preferred dividend are similar to interest payments on bonds in that they are fixed in amount and generally must be paid before common stock dividends can be paid. On the other side, preferred dividends can be omitted without bankrupting the firm, any many preferred stock issues have no specific maturity date.

Common stock
Common stock represent ownership in the corporation. Common stockholders are the true owners of the firm. Common stock does not have a maturity date.

Love songs

I am crazy about the love songs. I enjoy my time with love songs. I have not yet a girlfriends. My friends can't believe me. Whatever the situations is comes, but i always love the love songs. But i have a problems, i can't find the latest love songs. So if anyone knows how to get latest love songs to listen? I searched on the youtube, CDs on markets but youtube takes more and more time to play the songs and CDs comes in Nepalese markets slowly, which makes me bored. So please suggest me to get those songs.

Best lyrics

I've been alone with you inside my mind 
And in my dreams I've kissed your lips a thousand times 
I sometimes see you pass outside my door 
Hello, is it me you're looking for? 

I can see it in your eyes 
I can see it in your smile 
You're all I've ever wanted, (and) my arms are open wide 
'Cause you know just what to say 
And you know just what to do 
And I want to tell you so much, I love you ... 

I long to see the sunlight in your hair 
And tell you time and time again how much I care 
Sometimes I feel my heart will overflow 
Hello, I've just got to let you know 

'Cause I wonder where you are 
And I wonder what you do 
Are you somewhere feeling lonely, or is someone loving you? 
Tell me how to win your heart 
For I haven't got a clue 
But let me start by saying, I love you ... 

Hello, is it me you're looking for? 
'Cause I wonder where you are 
And I wonder what you do 
Are you somewhere feeling lonely or is someone loving you? 
Tell me how to win your heart 
For I haven't got a clue 
But let me start by saying ... I love you 

Everything i do lyrics

Look into my eyes - you will see 
What you mean to me 
Search your heart - search your soul 
And when you find me there you'll search no more 

Don't tell me it's not worth tryin' for 
You can't tell me it's not worth dyin' for 
You know it's true 
Everything I do - I do it for you 

Look into your heart - you will find 
There's nothin' there to hide 
Take me as I am - take my life 
I would give it all - I would sacrifice 

Don't tell me it's not worth fightin' for 
I can't help it - there's nothin' I want more 
Ya know it's true 
Everything I do - I do it for you 

There's no love - like your love 
And no other - could give more love 
There's nowhere - unless you're there 
All the time - all the way 

Oh - you can't tell me it's not worth tryin' for 
I can't help it - there's nothin' I want more 
I would fight for you - I'd lie for you 
Walk the wire for you - ya I'd die for you 

Ya know it's true 
Everything I do - I do it for you

Meaning of Inventory

Inventory is store of goods and stocks. Items in inventories are called stock-keeping items held at stock piont. In manufacturing organization, inventory refers raw materials, parts and components, supplies, work-in process and finished goods. In service organizations, it includes the tangible items to be sold and used for day-to-day operations.

Inventories play vital role on the success of the organization. Inventory means not only maintaining stock, it refers the investment of the organizations as well as of the country. It is a major part of investment and affects the economy of the country as well. Therefore, inventory control is very essential. There should be a good inventory policy and controls. The set of policies and controls refer the inventory system of the organization.

Production and operations management focuses on conversion process of inputs into output of goods and services. It tries to maintain optimum inventory level at each stock point to ensure smooth flow of production, to meet demand of the customers at optimum cost.

Meaning of Inventory

Inventory is store of goods and stocks. Items in inventories are called stock-keeping items held at stock piont. In manufacturing organization, inventory refers raw materials, parts and components, supplies, work-in process and finished goods. In service organizations, it includes the tangible items to be sold and used for day-to-day operations.

Inventories play vital role on the success of the organization. Inventory means not only maintaining stock, it refers the investment of the organizations as well as of the country. It is a major part of investment and affects the economy of the country as well. Therefore, inventory control is very essential. There should be a good inventory policy and controls. The set of policies and controls refer the inventory system of the organization.

Production and operations management focuses on conversion process of inputs into output of goods and services. It tries to maintain optimum inventory level at each stock point to ensure smooth flow of production, to meet demand of the customers at optimum cost.

Meaning of Inventory

Inventory is store of goods and stocks. Items in inventories are called stock-keeping items held at stock piont. In manufacturing organization, inventory refers raw materials, parts and components, supplies, work-in process and finished goods. In service organizations, it includes the tangible items to be sold and used for day-to-day operations.

Inventories play vital role on the success of the organization. Inventory means not only maintaining stock, it refers the investment of the organizations as well as of the country. It is a major part of investment and affects the economy of the country as well. Therefore, inventory control is very essential. There should be a good inventory policy and controls. The set of policies and controls refer the inventory systme of the organization.

Production and operations management focuses on conversion process of inputs into output of goods and services. It tries to maintain optimum inventory level at each stock point to ensure smooth flow of production, to meet demand of the customers at optimum cost.

Dummy Variables

If the constraints of given LP problem are greater than or equal to type, in that case the constraints are converted into equations by subtracting surplus variables. In such a case, an identity matrix does not form with the coefficients of surplus variables. In order to obtain an identity matrix, the auxiliary non-negative variables are added to given constraints. Such additional variables are called artificial variables (dummy variables). These are denoted by D1, D2 or A1, A2 etc. When the given constraints are greater than or equal to and equal to type, the dummy variables are added.

If the objective function is to maximize a certain quantity, the coefficient of each dummy variable in objective function is assumed to be a very high positive number which is denoted by M. 

Concept of maintenance management

Maintenance is primarily concerind with aday to day problem of machinery equipment in maintaining good working condition. It is very essential to ensure a continuous production flow by utilizing maximum capacity of plant.

The main objective of the maintenance policy is to minimize total cost of maintaining an acceptable leverl of equipment reliability. All these objective of the maintenance can be outlined as below:

- to ensure prodduct and service quality and satisfaction of customers
- to increase reliability and life of machines and equipment to ensure plan safety and minimize industrial accident.
- to minimize operating cost
- to ensure continuity in produuctio
- to maximize the utilization of capacity

Therefore, the equipment reliability  can be maintained and improved in two ways:
a. Improving engineering design.
b. Management of implant inventory level.

Statitical Quality Control

The quality refers to conformity with certain prescribed standards or specifications and these standards may be in terms of size, weight, strenght, colour, taste etc. The producer is primarily interested to see that the product is desirable that the end successful marketing of the product it is disable that the end product must successful marketing of the product it is disable that the end product must conform to the standards or expectations laid down by the customers.

Statistical Quality Control is the planned collection and effective use of data for studying cause of variations in quality either as between process, procedures. Materials, mechanics, etc. over period of time. This cause-effect analysis is then feedback into the system with a view to continuous action on the process of handling, manufacturing, packaging, transporting and delivery at end-use.

Writing Blogs

Before:
I think, blog writing is a simple process that we can put our views in the site of google. Everything that we can say, we experiences, our views and our emotions. It is the way to flow the views to the different kinds of peoples.

Now
Blog writing is the most difficult task. It is about the experiencing something new. To write something about ourselves is quite easy, but describing something is very very difficult. Writing our own experience in a simple way is also becomes difficult for me.

I want to increase my PR in blogs, but it is also the most difficult tasks. I tried it for  2 months, but it does not increase my rank. It is just N/A. Where and how can I increase my PR, I don't know.

Lyrics of I don't wanna close my eyes

Lying close to you
Feeling your heart beating
And i wondering what you're dreaming
Wonderful if it's me you're seeing.

I can't live without you,
I can't even die without you,
you are my dream, my desire, my passion....
you are the one whom I love more than anything, more than anyone,
You are my life, my love, my world..
I can't even think about life without you,
you are my inspiration, my power, my weakness...
I feel your presence all the time,
You are my ecstasy, my spirit, my soul...
I can't face the hardships of life without you,
You are my strength, my confidence, my triumph...

Roses are red
My heart is sad
A smile from you
Will make me glad...

What is a BEAUTIFUL Girl?

An innocent dove,
A pillar of beauty,
A temple of love,
A faithful companion,
A friend in distress,
The richest treasure a man can possess..

Beautiful sms

A Friendship is Sweet when its NEW
Its Sweeter when its TRUE
But Its Sweetest when the friend is like U. 

WHY STUDENT FAIL (Jokes)

Saturdays-52 in a year,Days left 313
Summer holidays 50,Days left 263
8 hrs daily sleep-130 days GONe, Days left 141
1 hr daily playing means 15 days,Days left 126
2 hrs daily for eating means 30 days.Days left 96,
1 hr talking means 15 days.,Days left 81
Exams days 35 days,Days left 46
Eid & Gov holidays 20, Days left 26
Movies,TV at least 25 days,Days left 1
That 1 day is your BIRTHDAY.
Hun banda SALGIRHA waly din bhi parhy?

Jokes

Whos hot... Its U,
Whos
Charming... Its U,
Whos
Sweetest.. Its U,
Whos
Intelligent... Its U,
Whos dear & near friend... Its U
Whos a liar.. Its me

Jokes

A Sweet demand by a kid.
A kid was beaten by his mom.
Dad came n asked- what happen son?
Kid said-I cant adjust with your wife anymore,
I want my own.