The Financial Plan

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The Financial Plan
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Operating Capital Budgets

• Who works on budgets?
• Sales
• Operating Costs
• List fixed costs
• Capital Budgeting
• Long-term buying

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Pro Forma Income Statement

• Sales
• How to forecast?
• Cost of Good Sold
• Selling Expenses
• Salaries Wages
• Insurance and Other Expenses
• Investors
• Timeframe
• Estimates

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Pro Forma Cash Flows

• Why are cash flows necessary?
• Cash v. A/R
• Receipts gt Disbursements
• Receipts lt Disbursements
• How to calculate cash and disbursements?
• Percentages for each month

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Pro Forma Balance Sheet

• Assets
• Actual cost or amount expended
• Current
• Fixed

• Liabilities
• Current
• Long-term
• Pay immediately?
• Owners Equity
• Net worth of a business

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Break-Even Analysis

• Why use it?
• TFC/ (Price-UVC)

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Pro Forma Sources and Applications of Funds

• Sources
• Loans
• Personal funds
• Net Income
• Depreciation
• Application
• Increase assets
• Decrease L-T liabilities
• Decrease owners equity

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Software

• Microsoft Excel
• Advantages
• Other Software and Functions
• Peachtree
• Oracle Business Suite