Working on a breakeven analysis therefore can assist the managers learn

Working on a breakeven analysis therefore can assist

This preview shows page 2 - 4 out of 4 pages.

the author, a large number of start-ups lack understanding of their indirect and direct costs. Working on a breakeven analysis, therefore, can assist the managers learn financial figures, gain insights on the viability of their pricing, and set accurate sales objectives. (b) Determining Cash Flow for a give program Cash is the essence of any business. Without it, a venture is incapable of paying employees and suppliers, as well as staying afloat. However, with a cash flow statement, a business can avoid such eventualities. To begin with, the cash flow outlines where the program’s money went. Cash flow provides a detailed outline regarding how a project spent its money – whether inventory was increased using cash, more credit was extended to customers, or capital equipment was bought (Marshall, McManus, & Viele, 2011). By providing such an analysis, a program can determine ventures that are viable and undertake suitable mitigatory approaches. Additionally, the cash flow can help the program focus on creating excess cash. Making profits is
Image of page 2
FINANCIAL PROCESSES 3 essential but with cash flow, it is easy to find other things that can generate cash for the program
Image of page 3
Image of page 4

You've reached the end of your free preview.

Want to read all 4 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes
A+ icon
Ask Expert Tutors