Financial Planning

monetary resources ar those resources that have monetary value financial management is the planning and supervise of an formations pecuniary resources to enable the organization to achieve its financial goals Assets are the property and other items of the seam both tangible and intangible. Objectives of financial management: Liquidity - pipeline leader to pay short-term debts. Profitability - maximizing wage Efficiency - ability to maximize profits with minimal resources product - increase size in the longer term present on Owners beauteousness - percentage of profit compared with get along invested.

Th e Planning Cycle Address current financial slope Determine financial elements of business plan Develop budgets proctor property flow Interpret financial reports Maintain eternise system Planning financial controls Minimizing financial risk and losings Major participants in financial markets savings banks Finance/insurance companies merchant banks RBA Super funds Mutual funds Public/ semiprivate companies ASX Sources of funds Internal sources - Owners legality - Retained profits Advantages - mortified gearing - little risk Disadvantages Lower profits and slide by on OE External sources o         Short-term §         Overdraft §         Bridging finance §         Bank bills o         Long-term §         Bonds §         Mortgage §         Term loans §         Leasing §         Factoring §          guile credit §          Venture capital Advantages In! creased funds levy deduction on interest repayments Disadvantages Increased risk security required Regular repayments Lenders have introductory claim on money if they go bankrupt Leverage measures the relationship among debt and equity The accounting framework Raw selective information Processed Data Accounting Data Analysis of report Financial Statements §          tax income statement - shows revenue earned and expenses incurred everywhere the accounting period. §          counterweight Sheet - shows the businesses assets and liabilities at a rate in time. Financial Ratios Liquidity Current Ratio = Current assets (working k)         Current liabilities                  2:1 safe position Solvency Debt to equity = Total liabilities                   Owners Equity Profitability Gross Profit... If you want to get a full phase of th e moon essay, order it on our website: BestEssayCheap.com

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