Running Head: PERSONAL BUDGET, BALANCE SHEET AND CASH FLOW Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 University of Phoenix Personal Budget, Balance Sheet and Cash Flow Statement Summary Many factors have an impact on the financial planning of families, individuals, and businesses. Factors such as background, age, education, income, dependents, and goals all affect the financial statements of individuals. Planning carefully and keeping accurate records of personal finances help to develop a better understanding of a person’s financial status. Careful planning and record keeping of personal or company finances is extremely important for developing good spending habits and enjoying financial success (Kapoor, Dlabay, & Hughes, 2009). The following memorandum provides a summary of facts, such as age, dependents, education, income status, concerns, and goals, regarding Tom and Sue.
Investment Decision Analysis for IPG Photonics Corporation By: Stacey Fletcher FIN6409-1 Financial Management June 24, 2013 Everest University Introduction The premise of this paper is to assume that I have just graduated from the MBA program and have taken a job as a fund manager for a well-known investment banking house where I have been given $300 million fund to manage/invest. The type of fund I am managing is a pension/retirement fund of long-term perspective and tolerable of moderate risk for loss of capital, it has a required annual return of 9%. As such, in order to mitigate the investment risk, I am instructed to make 12 investments of $25 million dollars each. My first assignment is to preform an analysis on a company of my choice to determine if the fund I am managing should make the investment of $25 million in the stock of this company, and prepare a report. My analysis will be primarily based upon the company's most recent 3 years annual and quarterly SEC filings, and will be comprised of calculations of financial ratios for cash flows and profitability, as well as, forecast performance measures of earnings, analysts' reports and related articles.
Why should organisations collect, file and maintain accurate financial records? To have a record of how the business is running. To determine how the business is sitting financially and to inspire different processes to assist in growing the business. It will also display what money is going where and whether there is any room for alterations in staffing, produce, and marketing. Basically, it is used to anaylse the business as a whole and per section and to determine performance.
Cost of capital can help define the acceptability of investment opportunities. Besides, the cost of capital can scheme the corporate finance arrangement. Generally, the best way for designing the corporate finance structure is based on information of changing of the capital market. So, manager can figure out information like accounting reports and their cost of capital to market. By using the information, manager can use cost of capital for restructure the market price and earning per share in order to bring advantage for company.
1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Make choices about how to spend money responsibly, plan for retirement. Because, I will need to know how to plan later on in life with my finances.
a._ The potential to make a higher salary b._ Jobs with retirement plans and benefits c._ The ability to receive promotions and wage increases d._x All of the above 5. Which of the following elements of a comprehensive financial plan discuss analyzing future needs, such as saving for retirement or college funding for dependants? a._ Building wealth b._ Securing basic needs c._ Establishing a firm foundation d._x Protecting wealth and dependants 6. People have different styles when it comes to handling their money. List the two things that affect our personal beliefs and opinions about financial planning.
Ratios can tell if the business is using its assets appropriately, and if liabilities of the company are well-managed. It shows whether a business can invest in more capital, or if there is room for business growth. It shows whether a business will be able to pay off its debts or their short-term expenses or their daily expenses. It basically shows the strength and weaknesses of the business. It helps for forecasting on making certain financial decisions.
Decide how there can be improvements made toward your future planning and begin keeping track where your money is being spent and address small problems as they occur before they get out of hand. 3. Which phase in life is commonly associated with focus on marriage, family, purchasing a home, and career development? c. Late 20s through your 40s During these years many things occur that will effect your financial situation. This is one major reason for keeping track of where you spend money and preparing for any
If without the planning of a budget, the company may easily over spending on the cost. In addition, it helps to understand whether the business is in a healthy finance position by comparing with the actual figures with the projected figures. (John Tennent page179) mentioned that for a business planning on budgeting is a process used by management to create the blueprint for achieving that success. Financial planning is the most fundamental task for a business to determining on it strategic goals, objectives and achievement. The Financial plan needs to include the timeframes as well in order to achieve the goal within the budget set.
Complexities of the Financial System The U.S. Financial system consists of markets, policy makers, financial institutions, instruments, services and regulations that interact to assist with the flow of financial capital from savings into investments. The three main components of the financial system are the monetary system, which creates and transfers money; the financial institution, which accumulates, lends and invests savings; and the financial market, which markets and transfers financial assets. The financial system has a major impact on the economy, businesses and individuals. Therefore, it is important to maintain a strong and effective system. The ability of individuals to make wise economic decisions related to their personal financial affairs, the successful operation of businesses and the economic activities of the country is what the effectiveness and preservation of our financial system rely on.