1,860
28
Essay, 2 pages (500 words)

Business plan - (investment)

Business Plan – (Investment) Investment operations can only be conducted after thorough analysis which promises safety of investment along with high return. Usually from the cash flow the cash for investing, operating and financing activities is prepared. Investments are either in shares or in bonds. Investment in shares is risky but it generates high profit while investments in bonds are safe but it generates less profits. “ It is most important to analyze the cash flow statements of a business before making investment. Cash flow statements of a company show how well the company has planned and managed all their expenditures and collections” (Blogger 2010). Investments are usually done from the closing balance of cash flows and not from the surplus or deficit that is incurred in the financial year. In this firm three scenarios are given and the cash flow results of two financial years are given on the basis of which investments are prepared.
From the cash flows of the year 2011 – 2012 (Worst case scenario)
Investment for the period 2011- 2012 – worst case scenario
In the financial period 2011-2012 the cash flow on the closing balance is 1, 750, 766 only.
Therefore the investment choice is in shares and bonds.
100000 shares @ 10
1, 000, 000
750000 in bonds
750, 000
Total
1, 750, 000
Investment for the period 2012–2013 worst case scenario:
In the financial period 2012-2013 the cash flow on the closing balance is 2, 489, 948 only.
Therefore the investment choice is in shares and bonds.
200000 shares @ 10
2, 000, 000
480000 in bonds
4, 80, 000
Total
2, 480, 000
From the cash flows of the year 2011 – 2012 (Mean Case Scenario)
In the financial period 2011-2012 the cash flow on the closing balance is 2, 335, 766 only.
Therefore the investment choice is in shares and bonds.
200000 shares @ 10
2, 000, 000
335000 in bonds
335, 000
Total
2, 335, 000
From the cash flows of the year 2012 – 2013 (Mean Case Scenario)
In the financial period 2012 – 2013 the cash flow on the closing balance is 9, 119, 948. Therefore the investment choice is in shares and bonds
900000 shares @ 10
9000000
119, 948 in bonds
119, 948
Total
9, 119, 948
From the cash flows of the year 2011 – 2012 (Best Case Scenario)
In the financial period 2011 – 2012 the cash flow on the closing balance is 2, 500. 766.
Therefore the investment choice is in shares and bonds
200 shares @ 10
2000
500. 766 in bonds
500. 766
Total
2500. 766
From the cash flows of the year 2013 – 2014 (best case scenario)
In the financial period 2013 – 2014 the cash flow on the closing balance is. 17234. 948.
Therefore the investment choice is in shares and bonds
1000 shares @ 10
10000
7234. 948 in bonds
7234. 948.
Total
17234. 948
The items on the cash flow statement that information the collective transform in an organization’s cash situation resulting from any profits or losses from savings in the operating subsidiaries and financial markets, and changes ensuing from values spent on savings in capital assets for instance plant and equipment. Cash Flow statements have most fundamental information’s for depositor’s who are examining the financial report of the organization with savings objectives.
Reference List
Cash Flow Statements Analysis for Investment Objectives. 2010. Investment Blogger. [Online] Available at < http://www. getmoneyrich. com/cash-flow-statements-analysis-for-investment-objectives/> [Accessed 29 Nov. 2011].

Thank's for Your Vote!
Business plan - (investment). Page 1
Business plan - (investment). Page 2
Business plan - (investment). Page 3
Business plan - (investment). Page 4
Business plan - (investment). Page 5

This work, titled "Business plan – (investment)" was written and willingly shared by a fellow student. This sample can be utilized as a research and reference resource to aid in the writing of your own work. Any use of the work that does not include an appropriate citation is banned.

If you are the owner of this work and don’t want it to be published on AssignBuster, request its removal.

Request Removal
Cite this Essay

References

AssignBuster. (2022) 'Business plan - (investment)'. 29 September.

Reference

AssignBuster. (2022, September 29). Business plan - (investment). Retrieved from https://assignbuster.com/business-plan-investment/

References

AssignBuster. 2022. "Business plan - (investment)." September 29, 2022. https://assignbuster.com/business-plan-investment/.

1. AssignBuster. "Business plan - (investment)." September 29, 2022. https://assignbuster.com/business-plan-investment/.


Bibliography


AssignBuster. "Business plan - (investment)." September 29, 2022. https://assignbuster.com/business-plan-investment/.

Work Cited

"Business plan - (investment)." AssignBuster, 29 Sept. 2022, assignbuster.com/business-plan-investment/.

Get in Touch

Please, let us know if you have any ideas on improving Business plan – (investment), or our service. We will be happy to hear what you think: [email protected]