May 2020
Beginner
416 pages
9h 6m
English
book
Entrepreneurial Finance, Fourth Edition: Finance and Business Strategies for the Serious Entrepreneur, 4th Edition
by Steven Rogers
Content preview from Entrepreneurial Finance, Fourth Edition: Finance and Business Strategies for the Serious Entrepreneur, 4th Edition
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14
FAQs on Entrepreneurship Television Shows—with Answers
Question 1: How much money do you need?
Answer 1: The cash needed to purchase assets such as equipment, machines, desks, computers, etc., is very simple. Identify the cost of each item, multiply it by the number of units needed, and then add together to determine the money needed to purchase fixed assets. The cash needed for operations is determined by analyzing the pro forma (projections) income statement (profit and loss) and calculating the cumulative net income for each year. The year with the largest negative cumulative net income number is the amount of cash needed to operate your company (Chapter 4, “Financial Statement Analysis,” and Chapter 5, “Cash Flow Management”).
Therefore, ...
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