Mind map
Financial Plan
Mind map: Financial Plan
Map content
Financial Plan
Profit and Loss
- Types of costs
- Cost of sales refers to cost incurred in bringing goods to point of sale
- Work out your different costs
- Shows all income earned and all costs incurred
- If income is greater than cost incurred then = profit
- If Costs exceed income = loss
- New business - projected statement of profit & loss
- Types of costs
Cash Flow Statements
- Indicates financial position by describing profit/loss of business
- It shows all the money that is coming in and being paid out
- Difference between opening & closing balances
- Helps identify operational problems and if finance is needed
Break-even Analysis
- Point at which sales are equal to costs at a particular price
- Determine the amount of sales required to keep business going
- Shows investors how profitable a business might be
- Depends on costs and profit estimates