Wednesday, 22 August 2012

Complete the following Budgets and Forecasts: Capital Budget, Forecasted Profit and Loss Account and Cash Flow Forecast, to include variations in Cash Flow Timings



Capital Budget

A Capital Budget is a plan that is used to determine whether or not a business should invest in new assets such as machinery, land, new facilities or invest in research and development ideas. This budget will have long term consequences good or bad for the company. This means the business must try and get it right the first time or end up damaging the firm.


An example of a capital budget





Check out this link to learn more about developing a Capital Budget:

Forecasted Profit and Loss Account





A forecasted profit and loss statement is an estimate of the business’s future operating activities results.

Check out this link to learn more about how to forecast a profit and loss account:
http://financialmodelingtutorial.com/how-to-forecast-income-statement/


Check out this video to learn more about the income statement i.e. profit and loss account, to learn more about forecasting a profit and loss statement.



Forecasting Your Profits & Losses: The Income Statement





Uploaded by  on 22 Feb 2012






To learn more about financial forecast check out this video:

Small Business Finance. 6- Financial Forecasts






Uploaded by  on 31 Oct 2011





Cash Flow Forecast to include variations in Cash Flow Timings





A cash flow forecast is a elimination of what cash is expected to go in and go out of the business. Usually these forecasts last for a year. It is also used to find out when loan will be needed or how when will the business repay debts.
With regards to timing difference with cash flow when the business sells an item and  at what time the firm receives the cash.

Check out these links to learn more about this topic:

http://www.planware.org/cashflowforecast.htm

Click on this link to learn more about a cash flow forecast:



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