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Southville International School Affiliated with Foreign University

SCHOOL OF BUSINESS AND COMPUTING

MANAGING FINANCIAL
RESOURCES AND DECISIONS

Unit 2 – PAPER #1

SUBMITTED BY:
Rodolph Joseph B. Cannu
SECTION B

SUBMITTED TO:
MR. MARK ANTHONY CASANOVA

4 February 2015

TABLE OF CONTENTS
Contents
2.2 explain the importance of financial planning 3 2.3 ASSESS THE INFORMATION NEEDS OF DIFFERENT DECISION MAKERS 4 Lenders 4 Suppliers 4 Customers 4 2.4 explain the impact of finance on the financial statements 5 Investment 5 Borrowing 5 Sales of property 5 Cash sales 5 Leasing 5 4.1 DISCUSS THE MAIN FINANCIAL STATEMENT 6 4.2. Compare appropriate formats of financial statements for different types of business 7 TYPES OF BUSINESS ORGANIZATIONS 7 Owner's Equity 7 Partners' Equity 8 Stockholders' Equity 8 SERVICE, MERCHANDISING, MANUFACTURING INCOME STATEMENTS 9 Service 9 Merchandising 10 Manufacturing 11 4.3 INTERPRET FINANCIAL STATEMENTS USING APPROPRIATE RATIOS AND COMPARISONS, BOTH INTERNAL AND EXTERNAL 13 The liquidity ratio 13 Profitability ratio 14 Efficiency ratio 14 Leverage ratio 15 BIBLIOGRAPHY: 16 APPENDICES 17

2.2 explain the importance of financial planning
A financial plan is made up of financial statements that forecast the resources and provides the structure to the way of finance are handled within the company. It has two objectives. First, It ensures the availability of the funds that guarantee the timely availability of finance. Secondly, to see whether the business does not raise resources unnecessarily.
In this section, We’ll be discussing the importance of financial planning:
First, Financial planning can Increase the financial literacy of the planner that may provide options that may reach the goals by carefully analyzing potential results that can give a whole new…...

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