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Essay / Research Paper Abstract
This 4 page paper undertakes a cash flow projection for a business and then uses his to show the student how to create a projected profit and loss sheet and a balance sheet from the projections. The bibliography cites 1 source.
Page Count:
4 pages (~225 words per page)
File: TS14_TEbusproj.rtf
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Unformatted sample text from the term paper:
student there is a computer business, here we will assume that there are fixed cist of rent and rates, insurance and other fixed costs amounting to 5,000 a month. On
top of this, as this is a service related company there are wages and also parts, the variable cists are calculated at 50% of sales. Sales are projected as the
same level as the past year, although the fixed costs have increased. This can then be used to develop the pro forma balance sheet and profit and loss accounts.
There will be points at the end of each month where the plan is assessed and targets reassessed at the end of each
quarter. Here is a sample case flow. From this the balance sheet and the profit and loss account can be crated. Jan Feb Mar Apr Income 20,000 20,000
20,000 20,000 Fixed costs 5,000 5,000 5,000 5,000 Variable costs 10000 10000 10000 10000 Net income 5,000 5,000 5,000 5,000 Accumulative income 5,000 10,000 15,000 20,000
May Jun Jul Aug Sept Income 20,000 20,000 20,000 20,000 20,000 Fixed costs 5,000 5,000 5,000 5,000 5,000 Variable costs 10000 10000 10000 10000 10000
Net income 5,000 5,000 5,000 5,000 5,000 Accumulative income 25,000 30,000 35,000 40,000 45,000 Oct Nov Dec Total Income 20,000 30,000
30,000 260,000 Fixed costs 5,000 5,000 5,000 60,000 Variable costs 10000 15000 15000 130,000 Net income 5,000 10,000 10,000 70,000 Accumulative income 50,000 60,000 70,000
From this there are the figures needed for the calculation of the profit and loss account. The first line
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