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08.08.00LMKs method Step6 Capital needed The need for capital, Step 6 Having planned for a profit and loss statement, we know nothing yet about our real.

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Presentation on theme: "08.08.00LMKs method Step6 Capital needed The need for capital, Step 6 Having planned for a profit and loss statement, we know nothing yet about our real."— Presentation transcript:

1 08.08.00LMKs method Step6 Capital needed The need for capital, Step 6 Having planned for a profit and loss statement, we know nothing yet about our real need for capital to enable this business. We will estimate this need in a simplified way, where prime items are need for cash, accounts receivables, product stock and fixed investments.

2 08.08.00LMKs method Step6 Capital needed Calculate capital needed

3 08.08.00LMKs method Step6 Capital needed Balance used to calculate capital needed We make up a budgeted balance for each year, enabling us to compare with results obtained We estimate nessecary cash on hand to be equal to one months payments, not to be unduly worried, loosing the nights sleep Estimating the other figures we use key numbers abtained from accounting statistics and practise

4 08.08.00LMKs method Step6 Capital needed

5 08.08.00LMKs method Step6 Capital needed Comparing capital need with profit (before tax) We are now in a postion to budget ROI For a fail-safe plan as ours, it looks good Does it also support a valuation of the company in excess of capital needed ??

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