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÷ It forms one of the important aspect for formulating
and carrying business in a long run.
EXTRACTS:
Marketing Plan
Production Plan
Human resource Plan
The financial needs of an organisation can be divided
into four heads:
÷ start-up expenses
÷ operational expenses
÷ Personal expenses
÷ Contingency expenses
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÷ |peration/production forecasts

÷ sales forecasts
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÷ Cash budget &Working capital
÷ Profit & Loss account
÷ Cash Flow
÷ Balance Sheet
÷ Break-even Analysis
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÷ are estimates of cash inflows and cash outflows over a
period of time .
÷ Cash budgets can be drawn yearly,monthly and even
on a daily basis to determine the cash surplus and
shortage.


÷ Working capital=Current Assets-Current Liabilites
÷ Current Assets include-
÷ Cash in hand
÷ Cash in bank
÷ Raw materials
÷ Work in progress
÷ Finished goods
÷ Current liabilites include:
÷ Creditors for goods
÷ Wages
÷ Manufacturing expenses
÷ Administrative expenses
 W|RKING CAPITAL CYCLE

CASH

BILLS- RAW-
RECEVABLE MATERIAL

SEMI-
FINISHED
FINISHED
G||DS
G||DS
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÷ The difference between the revenues and expenditure
determines profit and loss.
÷ Its main components are revenue, expenses, gross
profit.
 
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÷ It shows the relationship between cost & profits with

the sales volume.
÷ It determines the activity where total cost = total
salesǥǥpoint of zero profits and zero loss.
Break even point= fixed cost/p v ratio
THANK Y|