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Implementation of the Decisions
Once alternative courses of action have been chosen, they must be implemented as part of the budgeting procedure. The budget is a financial plan for implementing the different decisions that management has made. The budgets for all the different decisions are stated in terms of cash inflows and outflows, and sales expenses and revenues. The budgets are merged altogether into a single uniting statement of the organization’s expectations for future periods. The statement is termed as a master budget. The master budget comprises budgeted profit and loss account, cash flow statement & balance sheet. The budgeting procedure communicates to everyone in the organization the part they are predictable to play in implementing the management's decisions.
INCOME STATEMENTS
The working capital needs of a firm are influenced by many factors. The important ones are as follows: Nature of business: The working capital necessity of a firm is closely l
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Analysis of Financial Ratios: Ratios are computed to find out the customer's liquidity position and capability to repay debts. The computed ratios must be compared along with the
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