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    Financial planning is an important part of business planning

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    (a) Explain why financial planning is an important part of business planning.
    (b) Describe one way that financial ratio analysis of projected financial statements could be efficiently used by managers for financial planning.

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    https://brainmass.com/business/strategic-planning/financial-planning-important-part-business-planning-483264

    Solution Preview

    a) Financial plan is an important concept of business plan as it helps in estimating the funds requirement and will assist in allocation of resources. It will help in working capital management and will aid in decision making of the entrepreneur as it involves preparation of Budgets, Income statement, Cost sheet and using evaluative tools. The Income statement is the scorecard that tells how much money the business earns over a given period of time.
    As per trademartes, "A good and proper financial plan is useful to face ...

    Solution Summary

    The expert explains why financial planning is an important part of business planning. One way that financial ratio analysis is projected financial statements is described.

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