Strategic Analysis with current research!
Assets represent the total resources of a company, which may shrink or increase depending on the results of operations. Assets are listed in liquidity order - ease of converting into cash. Liabilities include what a company owes: All businesses divide assets and liabilities into two groups: Net worth is the owner's investment in the case of a proprietorship or partnership or capital stock original investment plus earned surplus earnings retained in the business in the case of a corporation.
These are items that can be converted to cash within one year or in the normal operating cycle of a business. Also included in this category are any assets held that can be readily turned into cash with little effort, such as government and marketable securities.
CASH refers to cash on hand or in banks, checking account balances, and other instruments such as checks or money orders. A rule of thumb is that cash position is generally strongest after the peak selling season. Marketable securities are usually listed at cost or market price, whichever is lower.
When marketable securities appear on a statement, it frequently indicates investment of excess cash. A retailer, such as a department store, may show its customer charge accounts billed and unpaid in this category.
In many businesses, accounts receivable are frequently the largest item on the balance sheet. A company's health often depends upon timely collection of receivables.
Notes receivable may be used by a company to secure payments from past-due accounts, or for merchandise sold on installment terms. Retailers and wholesalers will show goods that are sold "as is" with no further processing or supplies required in shipping.
On the other hand, many manufacturers will show three different classes of inventory: As a company's sales volume increases, larger inventories are required; however, problems can arise in financing their purchase unless turnover number of times a year goods are bought and sold is kept in balance with sales.
A sales decline could be accompanied by a decrease in inventory in order to maintain a healthy condition. Noncurrent assets are defined as assets that have a life exceeding a year. Examples include real estate, buildings, plant equipment, tools and machinery, furniture, fixtures, office or store equipment and transportation equipment.
All of these would be used in producing products for a company's customers. Land, equipment or buildings not used in the production of customer goods would be listed as other noncurrent assets or investments.
Fixed assets are carried on the company's accounting books at the price they cost at the time of purchase. All fixed assets, except for land, are regularly depreciated since they eventually wear out. The reductions are considered a cost of doing business and are called depreciation expense.A Business Plan is a written document that outlines a company's goals and how it plans to achieve them.
It also encompasses several other aspects of a company's future agenda and can serve as a tool for internal decision-making or as a business proposal to pitch to potential investors. When it comes to a business plan format, there are ten basic elements that must be covered when writing a business plan..
The standard contents of a business plan includes: an overview; executive summary; general company description. The stodgy business plan--that multipage printed document that entrepreneurs used to hand out at meetings with venture capitalists--has gone the way of the typewriter and Rolodex.
Writing detailed and long business plans can be a daunting prospect and may lead to much stress and time consumption: this is why the one page business plan is the perfect way to get you started right up on formulating your end goals and business strategies while giving you the benefits of business plan.
A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it.
If you jot down a . Business plan in Nigeria. How to write business proposal. Samples to help you become a professional feasibility report writer.