1) What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
The fact that an entrepreneur is able to use a sales forecast when determining the operating budget is a surprise to me just because it is amazing that you are able to forecast what you project your sales to be in your business.The simple linear regression formulas make it easy for you to determine what your sales could be based on different ways of implementing your product.
2) Identify at least one part of the reading that was confusing to you.
The part where they talked about capital budgets was a little confusing because I'm not sure what it means for the inflows to be equal to the net operating income or what depreciations are.
3) If you were able to ask two questions to the author, what would you ask? Why?
Do all businesses use cash-flow statements? It seems very beneficial to businesses but also very time-consuming and difficult.
If there was a problem in your business inventory or something was not documented as being sold would this throw off the entire cash-flow budget? I'm sure there a lot of ways to make sure this doesn't happen but it must be hard to tell.
4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How
This chapter was about a lot of business facts and statements, so I don't really think there was anything that I could disagree with. It was very well laid out and explained by the author.
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