Essay About Financial Needs And Total Quality Plan Implementation Paper

Planning and Implementing – Case Study – matt97
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Process   Planning and ImplementingFinancial planning is essential to achieve goals. Determines how goals will be achieved. Process involves setting objectives, determining strategies, identifying/evaluating courses of action and choosing best alternative for firm. a. Financial Needs To determine where firm is headed- goalsIncludes: balance sheets, income statements, cash flow statements, sales and price forecasts, budgets, bank statements, break-even analysis, financial ratio analysis, etcb. Developing BudgetsProvide information about requirements to achieve particular purpose. Monitoring of objectives.Show: cash required for planned outlays, cost of capital expenditure and associated expenses against earning capacity, estimated use and cost of inputs/inventory. Control: planned performance measured against actual performance- action taken.3 types: operating, project or financialOperating: sales, expenses, inputs- main activity of firm.Project: capital expenditure, R&DFinancial: income statement, balance sheet, cash flow statementc. Record SystemsMechanism employed to ensure data recorded and information provided is accurate, reliable, efficient and accessible. Minimising errors d. Financial RisksRisk to firm of being unable to cover financial obligations (e.g. debts short and long term). Inability to meet debt= bankruptcy In assessing risk, consideration given to: amount of borrowings, terms, interest rate, and required assets needed to fund operations. Higher the risk= greater expectation of profits or dividends- to minimise risk: consider profit generated to cover costs. e. Financial controlsProblems/losses prevent achievement of goals. Common causes: theft, fraud, damage or loss of assets and errors in record systems.Controls: ensure plans determined lead to achievement. Budgets- assist firm to estimate resource requirements- compare to actual.Debt FinanceFunds usually readily available and interest is tax deductable- reducing cost.Risk/return must be considered when determining whether to use debt/equityGreater level of risk with borrowingApple’s short-term debt was approx. $20.3billion and long-term approx. $21.4billion (September 2013).AdvantagesDisadvantagesFunds readily availableSecurity requiredTax deduction for interestRegular payments must be madeIncreased Funds should lead to increased revenue/profitIncreased risk if debt comes from institutions- interest, GVT charges and principal repaid

Equity   Equity FinanceMost important source: – do not have to be repaid at set date. Generally safer than debt. Paid back to owners- drawings, dividends. Requires sufficient profits to be made to continue operatingTotal Shareholder Equity:$124,020m (2013) and $117,711m (2012) Apple paid total of $10.5billion in dividends in 2013 compared with $2.5b in 2012Matching Terms and Sources of Finance to Business PurposeFirms must find source most appropriate to fund activities arising from these decisions. Influenced by:Terms of Finance: must be suitable for structure and purpose of funds. Cost of each source of funding: whether from equity capital or debt capital such as borrowings must be determined. Rate of return also considered Structure of business: Small firm- fewer opportunities for equity. Costs: incl. set up costs, interest rates, etc. Measured for each of available sources of finance- costs fluctuate (depending on market/economy)Flexibility of source: Firms require sources to be variable so that if firms have excess funds, borrowings paid off quicker, increased or renewed conditions change. ComparisonDebtEquityDebt repaid periodicallyNo maturity dateInterest tax deductibleDividends not tax deductible Lenders require lower rate of returnShareholders- higher returns as a result of higher riskProviders of debt- no voting rightsHolders of equity have voting rights Level of Control maintained by firm: If lender requires security over asset- firms ability to consider future financial possibilities is reduced. Limitations of Financial ReportCaution must be exercised in reading information. Misleading= impacts on decision making/puts firm at risk.LimitationDescriptionNormalised earningsEarnings adjusted to take into account one off influences e.g. sale of land so as to display true earnings of a firm (keep balance)Capitalising ExpensesAdding capital expense to balance sheet that is regarded as an asset (add value to firm) rather then expense= adds valueE.g. R&DValuing AssetsEstimating market value of assets/liabilities3 main methods:Discounted cash flow- value estimated based on future cash flowGuideline company- observing prices of similar companies Historical Value- original value- affected by depreciation- B/S- doesn’t represent value of firm (NCA)Timing IssuesSeasonal fluctuations: Economics cycle, delay banking, prepay expenses. Avoid- not true representationDebt repaymentsRecording of debt repayments- used to distort ‘reality’ of firm’s status- credit history. Notes to financial statementDetails/info left out of main reporting documentsFinancial reports used in caution: E.g. Special circumstances may distort analysis of Q results. E.g. 2001 natural disasters and weather events (cyclone Yasi) adversely affect profitabilityEthical Issues Related to Financial ReportsGenerally accepted that financial decisions must reflect objectives of firm in the interest of owners or stakeholders.

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(2015, 08). Planning and Implementing. EssaysForStudent.com. Retrieved 08, 2015, from
“Planning and Implementing” EssaysForStudent.com. 08 2015. 2015. 08 2015 < "Planning and Implementing." EssaysForStudent.com. EssaysForStudent.com, 08 2015. Web. 08 2015. < "Planning and Implementing." EssaysForStudent.com. 08, 2015. Accessed 08, 2015. Essay Preview By: matt97 Submitted: August 4, 2015 Essay Length: 9,894 Words / 40 Pages Paper type: Case Study Views: 480 Report this essay Tweet Related Essays Implementation Plan Concepts Worksheet Implementation Plan Concept Worksheet Student Name University of Phoenix Implementation Plan Concepts Worksheet Concept Application of Concept in the Scenario Reference to Concept in Reading 777 Words  |  4 Pages Implementation of a 401(k) Plan Program Bakersfield Lighting Corporation (BLC) wants to know the tax benefits and tax implications of implementing a 401(k) program plan for present and incoming employees. First 1,637 Words  |  7 Pages Total Quality Plan Implementation Paper Total Quality Plan Implementation Paper Introduction When approaching a problem with a quality process, it is important to make a total commitment to the implementation 1,524 Words  |  7 Pages Total Quality Plan Implementation Total Quality Plan Implementation Paper David Fessler University of Phoenix MGT 449 / SPMO404 Quality Management and Productivity Maurice S. Pickett December 1, 2005 1,590 Words  |  7 Pages Total Quality Plan Implementation As companies continue to grow, they rely more on the use of computers to assist with the completion of most daily tasks. Today’s computers have 1,983 Words  |  8 Pages Similar Topics Chemistry Planning Designing Lab Marketing Project Plan Get Access to 89,000+ Essays and Term Papers Join 209,000+ Other Students High Quality Essays and Documents Sign up © 2008–2020 EssaysForStudent.comFree Essays, Book Reports, Term Papers and Research Papers Essays Sign up Sign in Contact us Site Map Privacy Policy Terms of Service Facebook Twitter