CHAPTER 4
FINANCIAL STUDY
Financial analysis is an integral
part in the assessment of the performance of a business. The primary objective
of any business is to generate profit. Profit reflects
the performance of the company in terms of marketing its products.
These are a need for
the management to make a financial forecast for them to generate
their desired profit.
The financial aspect covers the evaluation and
analysis of data taken from management, marketing and technical
phases of accounting to determine the profitability and financial
condition of the proposed
business.
4.3 Sources
of Financing the Project
In order to finance
the project, the partnership will issue capital of P 600, 000
contribute by four general partners.
4.4
Financial Statements
Financial statements
had shown the result of generation for a given period of time and
the financial condition of a business. For the proposed business.
The proponents prepared projected Balance sheet, Income Statement,
and Cash Flow Statement for five years and for the month.
See print outs for
the references.
4.5
Financial Analysis
Financial statement
analysis involves the assessment and evaluation of the firm’s past
performance, its present condition, and future business potential.
The data needed for analysis and interpretation came from the
financial statements where key figures are sought and meaningful
relationship are developed and analyzed. The proponents used various
tools and techniques in analyzing and interpreting the projected
financial statement such as the tables bellow. 4.1 MAJOR ASSUMPTIONS
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