Share
Explore BrainMass

Define each part of a financial plan

Define each part of a financial plan and discuss the importance of these components in managerial decision making.

APA FORMAT 275 WORDS

Solution Preview

The response addresses the queries posted in 592 words with references.

//Financial plan refers to the statement of various known variables, such as asset values, future cash flows and withdrawals for managing finance in the long run, to execute business goals. It is a sequential plan for attaining financial goals of the business in an effective manner. In this context, different parts of a financial plan will be discussed to have a deep insight of a financial plan and its components.

Different Parts of Financial Plan

A financial plan consists of three parts, i.e. income statement, balance sheet and cash flow statement. Income statement of the company provides information regarding the income and expenses incurred in an accounting period by the firm. It focuses on the revenues and expenses incurred in both the operating and non-operating activities in a summarized way to get the information about the profit or loss generated in a given accounting period by the firm. Balance sheet is the statement which provides ...

Solution Summary

The response addresses the queries posted in 592 words with references.

$2.19