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Application of Statistic

Application of Statistic

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Published by rathod30

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Categories:Types, School Work
Published by: rathod30 on Aug 09, 2010
Copyright:Attribution Non-commercial


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Statistics in Business analysis (for small business):
a) Managing accounts: working out monthly internal accounts
Management accounts are made by entering the values that portray your liquidassets, i.e., those that can be easily turned into cash: debtors, stocks/goods, cash in bank or in hand.On the other hand liabilities such as: creditors, loans, taxes. These figures gives amore realistic financial position.
Management accounts are used for planning to help build cash flow forecasts and budgets. All financial figures should therefore be reviewed to check their favorability.Example: you may be owed a huge sum of money by creditors, but what if this islong overdue ±is it a good cash flow position to have now? Is the cash in your  bank, yours to spend? Have you allowed for taxes in your cash flow? «. That iswhy you need statistics in business analysis to know where you stand
Complete a management accounts form to work out your financial position byentering simple figures that also make up your 
The Balance Sheet 
with a high-degree of accuracy.
 b) Analyzing statistics in company reports:
When it comes to trading with other businesses, it is common to overlook thestatistics reflecting their performance capabilities. By doing so, your businesscan be faced with credit problems having a serious impact on future cash flow.
To avoid putting yourself in this situation, a Company Report can be obtainedthat reviews the suppliers you use. The report information can then be used tohelp you make a more confident judgement of, say, a new customer you areabout to deal with on a credit period basis (or not confident as the case may be).MUCH overlooked is the task of obtaining regular (at least annually) creditreports of EXISTING suppliers: doing so will mean less of you saying ³I never thought they would do this to me´ when they cease to trade and owe you theequivalent of a year or twos profitability. The larger reports have ratios that areeasily understood after a little practise .

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