BU121 Lecture 6 - BU 121 6 PPT 3 Key Points for The Numbers...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
BU 121 – 6 PPT 3 11-03-29 3:13 AM Key Points for The Numbers (BDO Seminar Series) : Cash is King Profit vs. Cash Cash Flow Forecast – Cash Budgeting Pre-operating and Operating – Monthly or at least quarterly – not constant Fund Losses / cash deficiency! o Lets you know how much to ask for and when you can repay them o “Burn Rate” - before you are cash flow positive (how much you burn before you have money… can pay them back) Sales Predictions Critical Marketing Seminar next Monday Integration of finance with other functional areas Importance of sales predictions to budget, and plans to reach projections o Back up with plans for activity Capacity and infrastructure to meet sales projections o Can we actually do what we’re claiming we can? Sensitivity analysis and contingency plans Forecasting Market Demand Monday Jan 31 5:30 – 6:50 P 1025/1027 Key Points from Last Class: CVP Analysis Key is in understanding concepts and knowing when and how to apply tools vs. manipulating formulas 3 decisions, 3 tools o Breakeven – measure risk – make any money Calculate – chart(interpret), algebraic (concept), contribution* Interpret – margin of safety, compare to market
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

BU121 Lecture 6 - BU 121 6 PPT 3 Key Points for The Numbers...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online