Topic: Projecting Profits and Losses Order 879356
Name
Institution
Topic: Projecting Profits and Losses Order 879356
What are some of the significant discoveries you made about your business’s monthly profit and loss potential as you completed the spreadsheet?
After inserting the figures in the excel sheet for one month, it is inevitable that we need to be more vigilant to make our business and what we do know to many people and potential clients so that we may bring in more business. We have also decided to make K9 University know to all the social media platforms. We want to reach a significant number of potential clients, including police, military, and private individuals for their dog training needs. After carefully completing the monthly profit and loss statement, it showed that that the profit stood at 200 dollars for the month. After paying salaries for two people, the profit we got was my partner and me, who helps me run the business together and me. We also subtracted the amounts paid for supplies and utilities. It seems that for the first 6-12 months, we will be taking any money out of the business as we will be allowing ourselves to grow and build up more revenue.
What questions do financial ratios help answer about a firm’s financial performance? What ratios might be of more interest to certain stakeholders, and why?
Financial ratios are vital to the business, and they are gotten after determining the relationship from financial information and are utilized for comparison reasons (Williams Jr, 2018). Financial ratios answer the questions on how the business is doing relative to its financial strength. They answer the questions on the income statements’ performance, cash flow statements, and balance sheets. The ratios of interest to the business return on investment ratios will provide the business with information on how the management has utilized the business’s resources. Liquidity ratios will provide the company with its ability to pay the current obligations. Efficiency ratios will help the business us the business owners on how to manage the business better.
Reference
Williams Jr, R. I., Manley, S. C., Aaron, J. R., & Daniel, F. (2018). The relationship between a comprehensive strategic approach and small business performance. Journal of Small Business Strategy, 28(2), 33-48.