...* How does a personal cash flow statement help you organize your finances? * What was the most interesting thing you learned about completing this worksheet? * Did this worksheet provide you with any ideas about how you may want to change your budget (how much you are spending, saving, or reducing your debt)? The personal cash flow statement is a categorized sheet that helps us identify the relationship between income and expenses. Calculating the income is an easy process, all you need to do, is add up the primary sources , like the monthly salary and the extra income like scholarship, gifts, but calculating the expenses is much harder because the total amount of the income, will be spent in so many different ways. This sheet will help you record the outflows over the same period of time, from the essential expenses to the unnecessary ones. Completing the sheet will make you feel organized and able to count all the expenses no matter how much money you spent on little purchases, and it make you go over the bank statements, the life and health insurances, the credit cards statement and bills, the ATM machine receipts, then get it all together and file it in order. This way, the financial situation will be organized, and you will be able to determine the net worth, how much you own and how much you owe, by the end of the month if you have money left over or if you are spending more money than you can afford . You will know by completing...
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...Personal Budget, Balance Sheet, and Cash Flow Statement ACC/547 Memorandum To: Mr. From: Mr. Subject: Personal Budget, Balance Sheet, and Cash Flow Date: Thank you for providing the details required to assist you in developing a comprehensive budget for successfully managing your personal finances and planning in advance for the future. As you have seen, our process of developing this plan for effective day to day management of financial activities required an in depth review of your personal financial records, use them to create your personal financial statements, and to create and implement the plan for spending and saving. In addition to the financial records provided, other factors are considered. These factors are your age of 40 years old, the fact that your education level is a bachelor’s degree, you are single with no dependents, never married, have worked for the same Engineering firm for the past 18 years with a stable and increasing annual salary throughout your career. I further understand that you feel like you are not quite gaining on credit card debt as you had hoped at this point in your life, and your thoughts are beginning to become more serious about your retirement and how you should be preparing, financially. Your goals of being able to retire earlier than your friends and live comfortably can be obtained. Your goal of becoming debt free before you’re 45th birthday is also attainable. This memorandum will provide a brief summary of my main...
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...Modern College of Business and Science BTEC Level 3 National Extended Diploma Fall 2017 Unit 5: Business Accounting Assignment 1: Cash flow P1, P2, P3, M1 & D1 Submitted by Zuwena Suleiman Seif ID number 20178122 Submitted to Mr. Bou 26th November 2017 INTRODUCTION In this assignment, I will be explaining and show you how will I able to create the Cash Flow Forecast for one year from January 2018 up to December 2018. Also, I’ll explain the importance of record and keeping accurate financial data and how this record will help me to run and setting up my business. Not only that, but also, I will determine the closing balance of my Cash Flow Forecast in 1year which will base on the data that I’m going to predict in it together with...
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...| BS | FA* | Administrative expense | IS | E | Buildings | BS | FA | Cash | BS | CA | Common stock (at par) | BS | SE | Cost of goods sold | IS | E | Depreciation | IS | E | Equipment | BS | FA | General expense | IS | E | Interest expense | IS | E | Inventories | BS | CA | Land | BS | FA | Long-term debt | BS | LTD | Machinery | BS | FA | Marketable securities | BS | CA | Notes payable | BS | CL | Operating expense | IS | E | Paid-in capital in excess of par | BS | SE | Preferred stock | BS | SE | Preferred stock dividends | IS | E | Retained earnings | BS | SE | Sales revenue | IS | R | Selling expense | IS | E | Taxes | IS | E | Vehicles | BS | FA | * This is really not a fixed asset, but a charge against a fixed asset, better known as a contra-asset. P3-7. Balance sheet preparation LG 1; Basic – Personal Finance a. Adam and Arin AdamsBalance SheetDecember 31, 2012 | Assets | | | Liabilities and Net Worth | | Cash | $ 300 | | Utility bills | $ 150 | Checking | 3,000 | | Medical bills | 250 | Savings | 1,200 | | Credit card balance | 2,000 | Money market funds | 1,200 | | Total Current Liabilities | $ 2,400 | Total Liquid Assets | $ 5,700 | | | | | | | Mortgage | 100,000 | IBM stock | 2,000 | | Auto loan | 8,000 | Retirement funds, IRA | 2,000 | | Personal loan | 3,000 | Total Investments | $ 4,000 | | Total...
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...i) According to SCON 6 article 25, assets are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events. Assets has three characteristics: it embodies a probable future benefit that involves a capacity or in combination with other assets, to contribute directly or indirectly to future net cash inflows, a particular entity can obtain the benefit and control others’ access to it and the transaction or other event giving rise to the entity’s right to or control of the benefit has already occurred. Future economic benefit is the essence of an asset (paragraphs 27–31). An asset has the capacity to serve the entity by being exchanged for something else of value to the entity, by being used to produce something of value to the entity, or by being used to settle its liabilities. Expenses are outflows or other using up of assets or incurrence of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations. Expenses are actual or expected cash outflows that have occurred of will occur as a result of the entity’s central operations. Cost of the goods sold, interest, rent, salaries, depreciation may be given as examples. ii) Costs should be expensed when they have expired or used up and when they have no future economic value. They should be capitalized as assets when costs have not expired and...
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...which is an unincorporated business owned by one individual. | Advantages: | | A. it is easily and inexpensively formed | B. It is subject to few government regulations. | C. its income is not subject to corporate taxation but is taxed as part of the proprietor's personal income. | Disadvantages: | | A. it may be difficult for a proprietorship to obtain the capital needed for growth. | B. the proprietor has unlimited personal liability for the business's debts, which can result in losses that exceed the money invested in the company (creditors may even be able to seize a | proprietor's house or other personal property!) | C. the life of a proprietorship is limited to the life of its founder. | | | | 2. Partnership- which exists whenever two or more persons or entities associate to conduct a noncorporate business for profit. | A partnership's advatages and disadvantages are genally similar to those of a proprietorship. | Patnerships may operate under different degrees of formality, ranging from informal, oral undstandings to formal agreements filed with the secretary of the state in which the partnership | was formed. | | The partners can potentially lose all of their personal assets, even assets not invested in the business, because under partnership law, each partner is liable for the business's debts. | | | | 3. Coporation- is a legal entitiy created under state laws, and it is separte and distinct from its owners and managers. | Advantages:...
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...Checkpoint: Accrual Method These two are very different methods, but when speaking of the accrual method of accounting and the cash basis of accounting, the one main way to differentiate between the two are how they are recorded. The transactions are recorded in different ways. The accrual method likes to record the transaction before the actual transaction has given the money. So with the money not present in hand it’s still recorded. On the other hand we have cash basis accounting where the organization records in their books when the transaction has been given the money in hand or when it leaves their system. Now, depending of course on the different organizations you are discussing or dealing with on which is more adequate for their needs, but o accrual accounting I would predict that it would be more adequate to a nonprofit organization. The statement of cash flow is of great importance to an organizations financial management. When cash comes and goes this statement is present to give an adequate breakdown of what is recorded and given. The totals are added up over a particular time period. So the term cash flow is the main term used to make all clear. When financial stability of an organizations rest on what money they make or spend every day. It’s just fact money is an issue; you have to have it in personal venue and organizational venue as well. It will always be a topic of interest. These are two large accounting methods that are both...
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...to the public on a nondiscriminatory basis. ______________________________________________________________________________ TABLE OF CONTENTS INTRODUCTION 1 COVER SHEET 1 STATEMENT OF PURPOSE (MISSION STATEMENT) THE BUSINESS Legal Structure 2 Description of the Business 2 Products or Services 3 Location 3 Management 3 Personnel 3 Methods of Record Keeping 3 Insurance 4 Security 4 Summary 5 MARKETING Target Market 5 Competition 5 2 Methods of Distribution 5 Advertising 7 Pricing 7 Product Design 7 Timing of Market Entry Location 8 Industry Trends 8 7 FINANCIAL DOCUMENTS Summary of Financial Needs 8 Sources and Uses of Funds Statement Cash Flow Statement (Budget) 9 Three-year Income Projection 10 Break-even Analysis Graph 15 Actual Performance Statements 16 Balance Sheet 16 Summary 21 SUPPORTING DOCUMENTS Personal Resumes 22 Personal Financial Statement 22 Credit Reports 22 Copies of Leases 22 Letters of Reference 22 Contracts 22 Legal Documents 23 Miscellaneous Documents 23 9 PUTTING YOUR BUSINESS PLAN TOGETHER KEEPING YOUR BUSINESS PLAN CURRENT Making...
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...Finance is concerned with how individuals, such as managers, lenders, businesses, firms, investors, and borrowers allocate money over a specified period. This paper lists the definitions and roles of financial and accounting terms provided in the course design. The terminology that follows explains and interprets the concepts and elements relevant to the first week’s objectives and topics in Finance 370. Emphasis is placed on types of securities, markets, finance, equity, liability, ratios, and assets. Finance is the study of how people and businesses evaluate investments and raise capital to fund them. The key role of finance is the management of cash flow in deciding on investments, how to fund them, how to allocate money for day-to-day operations over time, and the interpretation of financial concepts, which is the central focus of finance. Efficient Market is a market price unbiased of the investments true mean value. The fact that the mean true value will deviate from the true mean randomly infers that there is an equal likelihood that prices may be over or under valued at different points in time. Because price is associated with the principle that market price reflects information, investors could drop, trade, or sell shares stocks, for example with Nike when any perceived risk from information that is available publicly to them so that investors cannot ever beat the market. The New York Stock Exchange is a good example of an organized market efficient...
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...Business plan for Strategic Management The Executive summary expresses the type of restaurant or business it wants to become and explains how it can accomplish the goals by setting their mission and objectives. What will be included in the executive summary are the Markets, Services & Products, and Financial status. Generally the market is a big group of individual with different wants and need. Restaurants and Business corporate look through this specific individual to whom will purchase their product and services. The location of the market emphasizes a huge impact on every kind of businesses, whether from a small noodle shop to a big shopping mall, the location is one of the most important aspects to a successful business. In order to create the best service and product, the restaurant or business must know what they are going to sell. Do you want to focus more on your food than your services or do you want to have a balance of both food and services? The menu item is very important since customers generally are persuaded by the image on the paper. Their perception and cognitive thinking influence what is call “stimulus” by which a customer is affected psychologically through their thoughts internally and externally. To achieve success, management must be strong and capable of forecasting the profit and loss of the business. That’s why companies implement objectives and missions to maintain their foundation. The objectives in general, is broader in scope than a...
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...statement of cash flow | | statement of financial position | Save Question 2 (4 points) Operating expenses include Question 2 options: | marketing-related expenses. | | the cost for independent dealers to prepare for the distribution of the product. | | interest on all loans. | | income taxes. | Save Question 3 (4 points) For the opening day of The Lemonade Kids, MacKenzie and John bought $40 of “premium pink lemonade mix” and paper cups, which constituted their Question 3 options: | cash balance. | | fixed assets. | | inventory. | | cost of goods sold. | Save Question 4 (4 points) After their first day of their The Lemonade Kids, MacKenzie and John’s profits were $45. However their cash increased by only $30 because their _____ also increased. Question 4 options: | debt | | inventory | | accounts payable | | accounts receivable | Save Question 5 (4 points) Raw materials and products held by the firm for sale constitute _____. Question 5 options: | accounts payable. | | accounts receivable. | | cost of goods. | | inventories. | Save Question 6 (4 points) Which asset would considered an other asset? Question 6 options: | Land | | Machinery | | Contingency funds | | Goodwill | Save Question 7 (4 points) Current assets include all of the following accounts except Question 7 options: | accounts payable. | | accounts receivable. | | cash. | | inventories...
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...Travel International (STI) will begin operations this year and provide adventure and sport/travel packages to people in Toronto, specifically the Ontario area. An opportunity for STI's success exists because the national tourism and travel industry is growing at 4%, and adventure travel at 10% annually. Further, the Ontario adventure travel market is growing at least 12% annually and there are no providers who specialize solely in adventure travel in the Ontario area. STI is poised to take advantage of this growth and lack of competition with an experienced staff, excellent location, and effective management and marketing. STI's total start-up capital requirement is approximately $102,500. Start-up will be financed through the owner's personal investment and a long-term note of $85,000 secured from the TD Canada Trust Bank. STI's target customers are health-conscious couples and individuals, with median household incomes of approximately $50,000. They are interested in popular adventure activities such as skiing, whitewater sports, and mountain biking. STI's most important target customers, however, will be married couples, ages 25-35, with children and household incomes over $50,000. STI's pricing strategy will be a major consideration. Much of it will be determined by market standards. STI will attempt to maintain margins of 10% on all airline travel. Margins on all other products and services vary depending upon the provider but are expected to average 20%. STI will make...
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...Case Analysis: GOURMET TO GO Introduction In an era of the changing face of the family’structure, Gourmet To Go (GTG) is a response to a demanding and time restricted schedule of a working mother. Gone are the days when the family is not with a “stay at home mother” who cooks nutritionally rich foods for the family’s good health. The current scenario is a working father and mother and father with kids in school. This is the foundation and the start up business GTG, responding to the ever changing times. Indeed, the above idea is a gold label for a start-up business. Necessity is the mother of invention in the science world. And with the changing face of the times, there is a necessity to respond to the needs of these families. True enough the idea of nutritious foods prepared carefully by people, with a consultant nutritionist and delivered right into one’s doorstep is a good strategy to answer this demand. Ms. Jones has this new concept of grocery marketing and plans to pioneer in this novelty business- delivering to the household doorsteps of young professionals of high disposable income and willing to pay for services packages of groceries for a menu of pre-planned recipes for a weekly meal. The nutritional requirements of the packages are considered, premium quality ingredients and the most efficient method for preparing the over-all meal included. Like all new businesses on birth, niche in the business and its future growth studied; operational aspects...
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...FP/101 Week 2 1. How does a personal cash flow statement help you organize your finances? 2. What was the most interesting thing you learned about completing this worksheet? 3. Did this worksheet provide you with any ideas about how you may want to change your budget (how much you are spending, saving, or reducing your debt)? The cash flow statement can help me organize my finances by being able to see how much money I am spending, and what I am spending it on. The statement breaks down everything from house related payments all the way to leisure activities like video games and movies. Being able to see what I spent my money on will allow me to make changes for the better or, help me to save money by seeing what I could go without and save that money. There have been plenty of times where I go out and spend more than I planned on spending whether it is on food or at the movies. I can use this chart to set up a budget for these sort of activities and not take any more money than what I budget myself spending. The most interesting thing I learned about this worksheet is, it is not just another assignment, but it can be used in everyday life. I like the idea of going to my computer and checking my monthly chart to see how much I have spent that month. Or I could use the chart to see how much money I have left to spend in a month. The cash flow chart is something that can be used in multiple ways to fit different needs...
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...Introduction While United States Generally Accepted Accounting Principles (U.S. GAAP) are required throughout the United States, other countries utilize other methods of classifying their financial statement items. While the standards of accounting differ among many countries, there has recently been an effort to attain a universal set of standards under International Financial Reporting Standards (IFRS). While this has not yet been achieved, multiple countries have made an effort to converge their standards with IFRS. This paper attempts to illustrate the diversity that currently exists throughout the accounting world, briefly comparing several key differences of U.S. GAAP to the standards used in Hong Kong, China, Mexico, and the United Kingdom. Hong Kong With a few minor exceptions, Hong Kong has officially converged its financial reporting standards with IFRS effective January 1, 2005 (AdoptIFRS.org). Hong Kong’s primary GAAP-required statements are known as Hong Kong Financial Reporting Standards (HKFRSs), including their interpretations (Deloitte Global Services Limited, 2013). Other mandated GAAP requirements are found in Hong Kong’s Companies Ordinance as well as its Listing Rules (Deloitte Global Services Limited, 2013). The following paragraphs briefly highlight key financial statement items and their differing treatments by Hong Kong under IFRS and U.S. GAAP. The Balance Sheet While U.S. GAAP only provides a small amount of direction when clarifying how assets...
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