Please answer my financial questions asap
When determining project cash flows and a company’s sales, variable costs, fixed costs, and its breakeven point the first step is identifying projected revenue. This helps determine how much cash is expected bring in during given period & can be done by performing market analyses or utilizing forecasting models depending on situation. The next step involves separating out various types of expenses incurred by organization such as basic supplies/materials (variable) versus more long-term investments/contracts (fixed).
Once these have been established – then it is possible calculate approximate profit margin which allows one understand amount of money being made after all necessary deductions have been accounted for. Finally, this information can be used figure out when company will reach “breakeven” point meaning they will no longer incur any losses due their operations & instead start making actual profits going forward.
In conclusion – analyzing cash flows & understanding different components which make up an organization’s financial statements are essential skills anyone looking analyze potential investments or simply gain better understanding how business works overall should master as soon possible in order ensure best results both short-term and long-term basis.