Chapter 2: Business Plan

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Presentation transcript:

Chapter 2: Business Plan Lesson 9: Financial Plan

Financial Plan Accumulates and describes all the data expressed in monetary units from the other sections of the BP. It is composed of the following important areas: 9.1 Major Assumptions 9.2 Projected Statement of Comprehensive Income 9.3 Projected Statement of Cash Flows 9.4 Projected Statement of Changes in Equity 9.5 Projected Statement of Financial Position 9.6 Financial Statement Analysis

9.1 Major Assumptions The financial statements in the business plan are NOT actual but rather projected, thus requiring some major assumptions based on reliable data or information.

Financial Statements The financial plan features the following different projected financial statements of the proposed business: 9.2 Statement of Comprehensive Income 9.3 Statement of Cash Flows 9.4 Statement of Changes in Equity 9.5 Statement of Financial Position

Financial Statements These are projected for at least three years and are considered the final product of the whole accounting process.

Financial Statement Analysis last section of the financial plan The analysis is done through several approaches and is usually dependent upon the objective of the users of the financial statements. It is conducted to determine the financial operation of the business in terms of liquidity level, profitability of operations, and solvency status.

Financing Summary

Projected Sales Forecast