Financial Analysis

Utilizing Chapter 6, prepare a two- to three-page paper (not including title and reference pages) that addresses the following points:

1. Describe how the analysis of the financial statements and projections can be useful in determining the sources of financing available for a new venture.
2. Describe the ratios that should be used to raise short-term and long-term financing.
3. Explain the validity of the ratios.

Paper must be formatted according to APA style, and you must cite at least two scholarly sources in addition to the textbook.

chapter_6_analysis_of_the_financial_statements_and_projections.docx

Answer Preview

In developing a sound business plan, cash flow analysis as well as the financial projections of any business is very important. This is so for both new and existing enterprises requiring funding as they have to show their profit…