Samyak Veera

1
Creating a Successful Financial Plan

• Samyak Veera

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 (contd)

• current assets- assets such as cash and other
  items to be converted into cash within one year
  or within the companys normal operating cycle.
• fixed assets- assets acquired for long-term
  use in a business.
• liabilities- creditors claims against a
  companys 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 owners
  investment in the business.

4
Basic Financial Statements (contd)

• The Statement of Cash Flows
• a financial statement showing the changes
  in a companys working capital from the beginning
  of the year by listing both the sources and the
  uses of those funds.

5
Creating Projected Financial Statements

• Samyak Veera

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 (contd)
• 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 companys
  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