Why shouldn’t companies use equity for working capital requirements?

Companies requiring funds can categorize all their requirements essentially into two buckets, debt financing and equity financing. Typically, debt financing involves borrowing funds from a bank or from the general public by issuing bonds. Equity financing includes selling shares of stock or taking on additional owners. The one common mistake entrepreneurs make is thinking that these …

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How Do Investors Decide – How Much Equity They Need, How Many Shares To Issue, How To Price The Share?

Ignore the first two slides if you're unaware of the methods.

Basics of a Balance Sheet

Balance Sheet of a Company:  A balance sheet gives the picture of assets and liabilities of the company as on the last minute of 31st March YYYY. So, many times the balance sheet of a company appears better than what it is in real. Sometimes, companies will request all debtors to clear the outstandings just …

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Profit & Loss Statement of a Company

Profit and Loss Account Statement (P&L Statement): 1. Profit = Sales - Costs 2. So, you basically have two entities: Sales and Costs.    The other names used to refer to Sales are: Fees, Income, Sales, Revenue, and Turnover.    The other names used to refer to Costs are: Expenditure. 3. Classification of Costs or …

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