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Describe how the analysis of the financial statements and projections can be useful in determining the sources of financing available

Describe how the analysis of the financial statements and projections can be useful in determining the sources of financing available

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

Describe how the analysis of the financial statements and projections can be useful in determining the sources of financing available for a new venture.

Describe the ratios that should be used to raise short-term and long-term financing.

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.

 

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Usefulness of Analysis of Financial Statements and Projections

            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 potential towards convincing financiers on their viability. Through the use of Financial…

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