the set of assumptions on which financial projections are based have little meaning. course hero

by Alessandra Cronin III 7 min read

What are the financial projection assumptions for my business?

Jan 28, 2013 · The set of assumptions on which financial projections are based have little meaning. ANS: F PTS: 1 NAT: AACSB Analytic | Information Technology. ... Make a fable based on the story and lessons of Antigone by Sophocles. Attach below is the summary of the play. ... Course Hero, Inc.

How do my assumptions flow through the financial model financial statements?

Oct 03, 2019 · Financial Projection Assumptions. The financial projections template requires a number of key business plan assumptions. Some of these financial projection assumptions such as the interest rate, and income tax rate are specific to the particular circumstances of the business, however others, such as those listed below, can be estimated using the published …

What is assumptions-sales?

Numbers without these assumptions will have little meaning. Projected Income Statements: These statements most often reflect at least quarterly performance for the first year, while annual statements are provided for years 2 through 5. Projected Cash Flow Statements: Such statements should be developed in as great a level of detail as possible for the first two years.

What are assumptions-balance sheet?

May 28, 2012 · Assumption 1 – Our industry is a billion dollar market. Assumption 2 – We believe we can get 1% of that market. These kind of top-down assumptions show that you don’t truly understand your market or what it is going to take to generate that level of sales and distribution.

What is equity on a balance sheet?

This includes capital, which is the amount that has been invested in your company, retained earnings, which is the accumulated profits (or losses) the company has earned from operations less dividends declared, and dividends payable, which are dividends that have been declared but not yet paid to the shareholders. Equity is the value that is left after you’ve subtracted your total liabilities from your total assets.

What is fixed asset?

Also called Plant and Equipment, these are assets which are of a durable nature and are expected to help generate revenue over a period of a year or longer. Fixed assets can include equipment, automobiles, furniture and fixtures, land, and buildings. They are listed at cost on the balance sheet and are depreciated over a period of years. Accumulated depreciation here is the total amount of depreciation that has already been recognized in periods prior to the business plan.

What is fixed cost of goods sold?

Fixed costs of goods sold are the costs associated with producing your products that tend to remain the same whether your sales volume increases or decreases. This additional table enables you to allocate, by percentages, your Fixed COGS amongst your Products/Services/Product Lines/Marketing Channels – some products/services may have no fixed COGs, therefore you would enter zero here. While overall Variable COGS and Fixed COGs are listed as separate line items on your Income Statement as expected, this allocation of Fixed COGs by Products / Services / Product Lines / Marketing Channels distinction is picked up in the Gross Profit analysis pages – more accurately reflecting your true costs involved with each Product / Service / Product Line / Marketing Channel.

What is break even analysis?

The Break-Even Analysis section calls for you to estimate the average monthly portion of fixed costs that are to be reclassified to variable costs for the purposes of break-even analysis for the first year.

What is cash flow statement?

The Cash Flow Statement, also known as a Statement of Changes in Financial Position, summarizes your cash-related activities over a period of time and shows where your cash came from and where it went. One resulting figure is your net cash balance.

What percentage of salary increase should be allocated to employee benefits?

Salaries should be increased by a percentage, typically 30% to 50%, to allocate the cost of employee benefits for general and administrative personnel.

What is sales in sales?

Sales are the revenues you generate from selling your products or services, and are generally recorded when your product is shipped or your service is provided.