Hi I am Samyak Veera from US. I believe in creating financial plan to achieve financial goals as it helps businessman in controlling their budget and save tax too.
2. Financial Management
A process that provides
entrepreneurs with relevant
financial information in an
easy-to-read format on a
timely basis; it allows
entrepreneurs to know not
only how their businesses are
doing financially, but also why
they are performing that way.
Samyak Veera
3. Basic Financial Statements
(cont’d)
current assets- assets such as cash and other
items to be converted into cash within one year or
within the company’s normal operating cycle.
fixed assets- assets acquired for long-term use in
a business.
liabilities- creditors’ claims against a company’s
assets.
current liabilities- those debts that must be paid
within one year or within the normal operating
cycle of a company.
long-term liabilities- liabilities that come due
after one year.
owners equity- the value of the owner’s
investment in the business.
4. Basic Financial Statements
(cont’d)
The Statement of Cash
Flows
a financial
statement showing
the changes in a
company’s working
capital from the
beginning of the year
by listing both the
sources and the uses
of those funds.
6. Ratio Analysis
A method of expressing the relationship
between a y two accounting elements
that allows business owners to analyze
their companies’ financial performance
7. Ratio Analysis
Operating Ratios (cont’d)
Average Payable Period Ratio:
measures the number of days it takes
a company to pay its accounts
payable
=365/Payables turnover ratio
=365/Purchases/Accounts Payable
=365/$939,827/$152,580
=365/6.16
=59.3 days
Industry: 43 days
8. Interpreting Business Ratios
Critical numbers:
indicators that measure
key financial and
operational aspects of a
company’s
performance; when
these numbers are
moving in the right
direction, a business is
on track to reach its
objectives
9. Break-even Analysis
Break-even point: the level of operation
(sales dollars or production quantity) at
which a company neither earns a profit or
incurs a loss
Fixed expenses: expenses that do not vary
with changes in the volume of sales or
production
Variable expenses: expenses that vary
directly with changes in the volume of
sales or production
10. Thank You
Samyak Veera
For more information :
http://www.bloomberg.com/profiles/people/
17164949-samyak-chandrakant-veera