Use should include
- preparing budgets
- analyzing financial statements
- balance sheets
- profit-and-loss (P&L) statements
- cashflow statements
- income statement
- identifying spending capabilities
- determining P&L
- financial ratios
- profitability
- liquidity
- leverage
- operating efficiency
- risk
- cashflow coverage
- comparing the business with a competitor’s financial ratios
- calculating depreciation
- calculating net worth
- managing cashflow risk.
Process/Skill Questions:
- How does one determine P&L?
- When should one complete a P&L statement?
- What is the difference between a cashflow statement and a P&L statement?
- How might a P&L statement be helpful in applying for loans?
- How is spending capacity determined?
- How often should one do an analysis of financial records?
- How is net worth calculated?
- What are liabilities? How are they identified?
- What is tax depreciation?
- What are some resources that could help calculate depreciation?
- Why is it important to be able to calculate net worth?
- What are examples of assets that should be listed?
- What is net income?
- What are the considerations when building a small business budget?