the financial plan. operating & capital budgets who works on budgets? who works on budgets?...
TRANSCRIPT
The Financial PlanThe Financial Plan
Operating & Capital BudgetsOperating & Capital Budgets Who works on budgets?Who works on budgets? SalesSales Operating CostsOperating Costs
List fixed costsList fixed costs Capital BudgetingCapital Budgeting
Long-term buyingLong-term buying
Pro Forma Income Pro Forma Income StatementStatement
SalesSales How to forecast?How to forecast?
Cost of Good SoldCost of Good Sold Selling ExpensesSelling Expenses Salaries & WagesSalaries & Wages Insurance and Other ExpensesInsurance and Other Expenses
InvestorsInvestors TimeframeTimeframe EstimatesEstimates
Pro Forma Cash FlowsPro Forma Cash Flows Why are cash flows necessary?Why are cash flows necessary? Cash v. A/RCash v. A/R Receipts > DisbursementsReceipts > Disbursements Receipts < DisbursementsReceipts < Disbursements How to calculate cash and How to calculate cash and
disbursements?disbursements? Percentages for each monthPercentages for each month
Pro Forma Balance SheetPro Forma Balance Sheet AssetsAssets
““Actual cost or Actual cost or amount expended”amount expended”
CurrentCurrent FixedFixed
LiabilitiesLiabilities CurrentCurrent Long-termLong-term Pay immediately?Pay immediately?
Owner’s EquityOwner’s Equity ““Net worth of a Net worth of a
business”business”
Break-Even AnalysisBreak-Even Analysis Why use it?Why use it?
TFC/ (Price-UVC)TFC/ (Price-UVC)
Pro Forma Sources and Pro Forma Sources and Applications of FundsApplications of Funds
SourcesSources LoansLoans Personal fundsPersonal funds Net IncomeNet Income +Depreciation+Depreciation
ApplicationApplication Increase assetsIncrease assets Decrease L-T liabilitiesDecrease L-T liabilities Decrease owner’s equityDecrease owner’s equity
SoftwareSoftware Microsoft ExcelMicrosoft Excel
AdvantagesAdvantages Other Software and FunctionsOther Software and Functions
PeachtreePeachtree Oracle Business SuiteOracle Business Suite