Financial plan – Cash budget, Working

capital, Income statement, Cash flow,

Balance sheet, Break even analysis
Mayank Kumar
MBA(BTM)
A0500118007
MBT/18/107
Financial plan
• A financial plan is a comprehensive statement of an individual's long-
term objectives for security and well-being and a detailed savings and
investing strategy for achieving those objectives.
• A financial plan may be created independently or with the help of a
certified financial planner.
Steps in Creating a Financial Plan
1.Calculating Net Worth
2. Determining Cash Flow
3. Considering Your Priorities
Special Considerations of a Financial Plan
• Retirement strategy
• Comprehensive risk management plan
• Long-term investment plan
• Tax reduction strategy
• Estate plan
Working Capital
• Working capital is a financial metric which represents operating
liquidity available to a business, organization, or other entity,
including governmental entities.
• Along with fixed assets such as plant and equipment, working capital
is considered a part of operating capital.
Cash Budget
• A cash budget is a budget or plan of expected cash receipts and
disbursements during the period.
• These cash inflows and outflows include revenues collected, expenses
paid, and loans receipts and payments.
• In other words, a cash budget is an estimated projection of the
company’s cash position in the future.
Income Statement
• The Income Statement is one of a company’s core financial statements
that shows their profit and loss over a period of time.
• The profit or loss is determined by taking all revenues and subtracting
all expenses from both operating and non-operating activities.
• Net Income = (Revenue + Gain) – (Expense + Losses)
Cash Flow
• Cash flow is the net amount of cash and cash-equivalents being
transferred into and out of a business.
• At the most fundamental level, a company’s ability to create value for
shareholders is determined by its ability to generate positive cash
flows, or more specifically, maximize long-term free cash flow.
Balance Sheet
• A balance sheet is a statement of the financial position of a business
that lists the assets, liabilities, and owner's equity at a particular point
in time.
• In other words, the balance sheet illustrates your business's net worth.
Break-Even Analysis
• A break-even analysis is a financial tool which helps you to determine
at what stage your company, or a new service or a product, will be
profitable.
• In other words, it’s a financial calculation for determining the number
of products or services a company should sell to cover its costs
(particularly fixed costs).
• Break-even is a situation where you are neither making money nor
losing money, but all your costs have been covered.
• Break-even analysis is useful in studying the relation between the
variable cost, fixed cost and revenue.
THANK YOU