Professional Documents
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Presented To:
Sir Ghulam Abbas sb
Presented By:
M.Sheraz Anjum Bukhtyar Ali Khurram Shahzad Muhammad Arqum BS(IT)7th BZUPAGES.COM 07-16 07-18 07-32 06-24
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THINK!!!
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Case Study
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Khurram Shahzad
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Financial Plan
Provides with complete picture of how much & when funds are coming into the Organization- Where funds are going- How much cash is available & projected financial position of the firm
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Helps new venture with most common problem- lack of cash Explain to potential investor
Plans to meet financial obligations How would he pay off debt or provide good ROI
3 Years of projected financial data to satisfy any outside investors First year should reflect Monthly data
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Budgets reflects seasonal demand or Marketing programs than can increase demand & inventory Ventures in which high level of inventory are necessary or where demand fluctuates significantly because of seasonality ----This Budget is valuable tool to asses cash needs
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Variable expenses which may change from month to month depending on sales volume, seasonality or opportunities for new businesses Advertising & selling expense
Capital budgets provide a basis for evaluating expenditures that will impact the business for more than one year. CB may project expenditure for new
Equipment, vehicles, computers etc
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Bukhtyar Ali
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New ventures take time to build up sales. Projections of all operating expenses for each of the months during the first year should be made.
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Cash is the money that is free & readily available to use in a business
Sales may not be regarded as cash. Use of profit as a measure of success for a new venture may be deceiving.
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Consists of:
Assets: items that are owned or available to be used in the venture operations. Liabilities: money that is owed to creditors. Owners equity: amount owners have invested and/or retained from the venture operations.
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Break-Even Analysis
Break-even: volume of sales where the venture neither makes a profit nor incurs a loss. Break-even sales point indicates the volume of sales needed to cover total variable and fixed expenses.
The break-even formula:
TFC
B/E(Q) =
SP VC/Unit (Marginal Contribution)
Major weakness in calculating the breakeven lies in determining if a cost is a fixed or variable.
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Questions Please..
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