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    Financial Plan2

    Uploaded by

    raazoo19
    Total capital requirements include fixed assets, pre-operating expenses, and working capital. The document determines if a loan is needed to finance the total capital required. It also identifies what security can be provided to a bank. Unit selling price is calculated to determine expected sales and profit. Cash flow, profit/loss, and balance sheet statements are analyzed. Return on investment and break-even point are calculated. Feasibility of the project is determined by assessing profitability, supply issues, and impacts of unrealized sales forecasts.

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    Financial Plan2

    Uploaded by

    raazoo19
    16 views6 pages
    Total capital requirements include fixed assets, pre-operating expenses, and working capital. The document determines if a loan is needed to finance the total capital required. It also identifies what security can be provided to a bank. Unit selling price is calculated to determine expected sales and profit. Cash flow, profit/loss, and balance sheet statements are analyzed. Return on investment and break-even point are calculated. Feasibility of the project is determined by assessing profitability, supply issues, and impacts of unrealized sales forecasts.

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    financial

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    Total capital requirements include fixed assets, pre-operating expenses, and working capital. The document determines if a loan is needed to finance the total capital required. It also identifies what security can be provided to a bank. Unit selling price is calculated to determine expected sales and profit. Cash flow, profit/loss, and balance sheet statements are analyzed. Return on investment and break-even point are calculated. Feasibility of the project is determined by assessing profitability, supply issues, and impacts of unrealized sales forecasts.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    16 views6 pages

    Financial Plan2

    Uploaded by

    raazoo19
    Total capital requirements include fixed assets, pre-operating expenses, and working capital. The document determines if a loan is needed to finance the total capital required. It also identifies what security can be provided to a bank. Unit selling price is calculated to determine expected sales and profit. Cash flow, profit/loss, and balance sheet statements are analyzed. Return on investment and break-even point are calculated. Feasibility of the project is determined by assessing profitability, supply issues, and impacts of unrealized sales forecasts.

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    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
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    You are on page 1of 6

    Financial plan

    What is the total capital requirement


    Is loan needed
    What security can be given to bank
    What is unit selling price of the
    product
    What does profit and loss statement
    indicate
    What does the cash flow statement
    indicate
    What does balance sheet indicate
    What is break even point
    What is the return on investment (ROI)
    Is the project feasible

    Total capital requirement

    Total capital requirement is


    composed of three items:
    Fixed

    assets: building, machinery,


    furniture, fixtures , etc.
    Pre-operating expenses: these
    include registration fees, training
    cost, cost of preparing business
    plan, etc.
    Working capital: the amount of
    money permanently needed in
    cash or kind to keep business
    operating.

    Loan need

    Determine the total capital


    requirement and see if the
    amount required is too much for
    you to finance on your own. If
    this is the case then loan is
    needed.

    Unit selling price

    To Calculate the expected sales


    for preparing profit and loss
    statement, determine the unit
    selling price of the product.

    Return on investment

    To calculate ROI;

    divide earning before tax (net


    profit) by the total capital
    requirement.

    Feasibility of the project

    This section deal with the


    questions like:
    Is

    the profit on the first year


    sufficient to meet the loan and
    interest payment
    Can raw materials supply problem
    overcome
    What happens if sales forecast is
    only 80% realised.

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