Projected Financial StatemenT
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This document outlines different types of financial statements including income statements, balance sheets, and cash flow statements. It discusses projected versions of these statements and their objectives. Projected financial statements are described as detailed descriptions of a company's operations and prospects for the upcoming years. They include projected income statements, balance sheets, and cash flow statements for two or three years. The objectives of the different statements are also summarized such as ascertaining a company's profitability, financial position, and cash flows. Sample projected financial statements are included for two and three year periods.
Projected Financial StatemenT
- 2. CONTENTS Financial Statement Projected Financial Statement Income Statement Projected Income Statement Objectives of Financial Statements Balance Sheet Projected Balance Sheet Objectives of Projected Balance Sheet Cash Flow Statements Projected Cash Flow Statements Objectives of Cash Flow Statements Conclusion
- 3. FINANCIAL STATEMENT Financial Statements is a formal record of the Financial Activities and Position of a Business, Person, or Other Entity. Usually prepared by a Company's Management, Investors, Lenders, Employees, Tax Authorities and Government to present the Financial Performance and Position.
- 4. PROJECTED FINANCIAL STATEMENT Projected Financial Statements are detailed description of a Company’s Operations and Prospects for the Upcoming Year. Projected Financial Statements Includes: Projected Income Statement Projected Balance Sheet Projected Cash Flow Statement
- 5. INCOME STATEMENT An Income Statement or Profit and Loss Account is one of the Financial Statements of a Company and shows the Company’s Revenues and Expenses. Helpful to know about Company’s Financial Condition.
- 6. PROJECTED INCOME STATEMENT Income Statement is a Statement which is prepared to know Profit or Loss of the Business.
- 7. PROJECTED INCOME STATEMENT FOR TWO YEAR
- 8. OBJECTIVES OF INCOME STATEMENT To Ascertain the Earning Capacity or Profitability To know the Solvency of an Organization To Ascertain the Financial Strength To know the Capacity of Payment of Interest and Dividend To know the Trend of an Organization To Provide useful information to the Management
- 9. BALANCE SHEET A Balance Sheet is a Financial Statement that summarizes a Company's Assets, Liabilities and Shareholders' Equity at a specific point in time. Formula Assets = Liabilities + Shareholders' Equity
- 10. PROJECTED BALACE SHEET Balance Sheet is a Statement which is prepared to know the value of Assets and Liabilities in end of a Period.
- 11. PROJECTED BALANCE SHEET FOR TWO YEAR
- 12. OBJECTIVES OF BALANCE SHEET The Main Objective of Balance Sheet is to assess the Financial Position of the Firm. It is the list of Assets and Liabilities of the Firm on a Specific Date. The Short Term and Long Term Financial Position of the Firm can be obtained from the analysis of the Balance Sheet. Balance Sheet is rightly said to be a mirror reflecting the true value of Assets and Liabilities on Particular Date.
- 13. CASH FLOW STATEMENT Cash Flow Statement is a Financial Statement that shows how changes in Balance Sheet Accounts and Income affect Cash and Cash Equivalents, and breaks the analysis down to Operating, Investing and Financing Activities. The Cash Flow Statement organizes and reports the cash generated and used in the following categories – 1. Operating 2. Investing 3. Financing
- 14. PROJECTED CASH FLOW STATEMENT Projected Cash Flow Statement is a key aspect of Financial Management of a Business, Planning its future cash requirements to avoid a crisis of Liquidity.
- 15. PROJECTED CASH FLOW STATEMENT FOR THREE YEAR
- 16. OBJECTIVES OF CASH FLOW STATEMENT Measure of Cash Generating Inflow of Cash Classification of Activities Prediction of Future Evaluation of Future Cash Flow
- 17. CONCLUSIONS
- 18. THANK YOU