Financial Planning

monetary resources ar those resources that have monetary value financial management is the planning and supervise of an transcriptions pecuniary resources to enable the organization to achieve its financial goals Assets are the property and other items of the care both tangible and intangible. Objectives of financial management: Liquidity - product line leader to pay short-term debts. Profitability - maximizing profits Efficiency - ability to maximize profits with minimal resources produce - increase size in the longer term subject on Owners legality - percentage of profit compared with get on invested.

The Planning Cycle Address current financial vista Determine financial elements of business plan Develop budgets reminder property flow Interpret financial reports Maintain testify system Planning financial controls Minimizing financial risk and losings Major participants in financial markets vernaculars Finance/insurance companies merchandiser banks RBA Super funds Mutual funds Public/ closed-door companies ASX Sources of funds Internal sources - Owners candour - Retained profits Advantages - humbled gearing - little risk Disadvantages Lower profits and make pass on OE External sources o         Short-term §         Overdraft §         Bridging finance §         Bank bills o         Long-term §         Bonds §         Mortgage §         Term loans §         Leasing §         Factoring §          wiliness credit  §         Venture capital Adva! ntages Increased funds measure deduction on interest repayments Disadvantages Increased risk shelter required Regular repayments Lenders have introductory claim on money if they go bankrupt Leverage measures the relationship among debt and equity The accounting framework Raw info Processed Data Accounting Data Analysis of report Financial Statements §         gross statement - shows revenue earned and expenses incurred everywhere the accounting period. §          proportionateness Sheet - shows the businesses assets and liabilities at a rate in time. Financial Ratios Liquidity Current Ratio = Current assets (working k)         Current liabilities                  2:1 safe position Solvency Debt to equity = Total liabilities                   Owners Equity Profitability Gross Profit... If you want to get a plenteous essay, order it on our website: BestEssayCheap.com

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