This also includes educating staff about the responsibilities of maintaining costs. What are the reports that can be used for financial planning in an organisation? Profit and Loss Balance sheet Revenue and Expenditure report Cash flow statement Debtors and Creditors reports What is the process for preparing budgets or other financial plans? 1. Identify data that needs to be collected.
Debt servicing will need to be examined in detail to discover if one, both, or neither of these financing decisions will force the firm into bankruptcy. Finally, we shall like to look at the effect to equity holders. What are the real costs of dilution and is dilution always costly? With all of this in hand, the student will make recommendations to Wathen regarding this acquisition and the financing of it, covering all of the pertinent issues and considerations. PRELIMINARY TASKS The Preliminary portion of this case will be particularly important in that it has repercussions to the valuation of the synergy as well as to the bid process.
6. Attitudes and changing needs over the life cycle are two things that affect our personal beliefs and opinions about financial planning. 7. Securing basic needs is the element of the comprehensive financial plan that focuses on your housing needs, setting aside money for emergencies, and establishing a career path. 8.
John and Jill ask you to prepare the following points in your report to present to the meeting. TASK 1 LO1 Understand how systems are used to manage financial resources in health and social care 1.1 Explain to the committee the expenditure, budget, capital and potential income for your new dynamic care home. For this part of the report you will need to explain what principles of costing will be used and what would be the most appropriate business control systems to monitor financial information within the home. 1.2 Identify to the committee which information will be needed in order to manage the financial resources. In this part of the report you should consider your business costs.
* Managements is currently seeking potential fund managers and also intend to use its current third party record keeper’s expertise to perform certain investment valuations. * Before finalizing and implementing the plan, management needs the approval of the Board of Directors (governance). * The Board has requested that management prepare documentation that will facilitate their understanding of the risks involved, as well as documentation listing the controls management intends to implement, both pre-investment and post-investment, to manage said risk and
Analysis of the income statement, balance sheet, cash flow statement will be performed. In addition, the information obtained in the above statements should assist management in making decision. Required information to make these decisions will be discussed as well. What does the income statement tell you about the company? Why is this statement important?
As a preparer of financial statements, management will want to produce an income statement that shows a profit (profit maximization motive). The main financial statement users are bankers, shareholders, and potential shareholders. Users will want statements that reflect the performance of management (stewardship) and predict the company’s ability to pay dividends and make loan payments (cash flow prediction). The ethics of the accountant are an issue here, as
Lessons learned from this topic and case study: 1. Managers need to be able to estimate the costs of different responsibility centres and products to assist with monitoring the performance of different departments and also to assist with decision making about product pricing, profitability of individual products, assist with decisions when making changes to product lines and various other managerial requirements such as controlling costs and valuing inventory for financial statements. 2. Dividing the business into cost objects such as departments or products can assist with creating greater accuracy when allocating costs to each ‘cost object’. 3.
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._ Analyze your current finances. b._ Establish and implement your plan. c._x Collect and organize your financial information. d._ Reevaluate and revise your plan as needed. 3.