Unit 2 – Task 10 Investigating Business Resources To: Spode’s casting shop From: Russel Williams Re: Casting shop budget What is budgeting and why is it important? Budget is a written down plan, usually expressed in monetary terms of what we hope will happens in the future. Budgeting is also known as the process of creating a plan to spend your money. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do. If you do not have enough money to do certain things you would like to do, then you can use this planning process to prioritise your spending and focus on the money on the things that are most important to you.
It requires reasonable business thinking to analyze if the stock will go up or down. Hence, it needs a portion of reading the recent news about the corporation. At least, I got an overview of how the stock market work by learning new business terms like short sell, margin, options, and many more. The stock market has influence me to be careful in buying shares from corporations. Stock market can either make me more money or lose more money.
The interest charged on the multimillion dollar loan clearly will have a significant impact on the company’s financial reports. Thus, the Financial Accounting Standards Board (FASB) established SFAS No. 34, “Capitalization of Interest Costs,” to provide guidance on how to record this type of interest properly. Basically, this standard explains that the interest on the loan for building your new facility can be capitalized, as part of the costs of the facility because it meets their two criteria, (1) it is not yet ready for use, and (2) it is currently under construction (p.
Cash disbursements show where you must spend some of your money, such as on employee pay, raw materials purchases, and manufacturing overhead costs Financing shows expected payments and the repayments of the borrowed funds plus interest. (Kimmel, 2009, p. 353). If there is a cash deficiency during any period, the company will need to borrow funds. If there is cash excess during any budgeted period, funds borrowed in previous periods can be repaid or the excess funds can be invested. 2) Why is a Cash Budget so vital to a company?
Assignment 1: Economic Basics (24.0 points) 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) Create a budget and save and invest money. to me saving money is important because when I don’t have the money to do what I need to do that is a need.
Once the strategic plan is implemented into the development of the organization, a financial plan can be developed to gain capital for organizational growth. A financial problem, which can be encountered by an organization when implementing a strategic plan, is the lack of capital to put the plans in motion. If the organization does not have the financial ability to back its strategic plan, both plans will not be successful. DQ#2: What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget?
Why it is important to increase economic growth 4. Your rationale for the use of Reserve Requirements At the end of the game, you will be provided with this information to give to your instructor. Answer: Type your response here… I am choosing to lower the reserve and increase the economic growth rate using reserve requirements. The reserve requirements are intended to exert effects on the banking industry by making the banks have on hand a specified ratio of funds relative to what they have loaned out. Lower reserve requirements will result in more funds being available to loan out.
Decisions in Paradise Part 2 Arbra Jones MGT/350 Professor Terica Pearson August 29, 2011 Decisions in Paradise Part 2 There are several decision making techniques which can be applied to identify problems, help create solutions and create an effective plan to establish a Regions branch location in Kava. The decision techniques Nik and his team have chosen to use incorporate breaking down and organizing the issues for plan development. The plan will ensure there is an efficient amount of time allotted to establish the new branch location as well as deal with the financial obligations associated with the venture. Nik’s team will conduct a series of brainstorming sessions that will identify the issues, gather as much information as
Since, the FED set the interest rate in which the banks borrow from, Edgars’ ability to borrow enough money or establish a line of credit to start his business will be affected by inflation, interest rate and financial policies. However, in some situations, an unanticipated inflation can benefit Edgar, as this type of situation whenever inflation rates are underestimated for the life of a loan, the bank loses and Edgar will
Finally, a look inside the most recent Chairman’s Report will explain what direction the Reserve has decided to move in regards to monetary policy. Purpose and Function of Money The purpose of money is to act as a valued asset that is accepted for