Explain how to interpret financial ratios Conduct a break-even analysis for a small company. Explain the importance of cash management to the success of the small business. Differentiate between cash and profits.

Understand the importance of preparing a financial plan.
Describe how to prepare financial statements and use them to manage the small business
Create projected financial statements.
Understand the basic financial statements through ratio analysis.
Explain how to interpret financial ratios
Conduct a break-even analysis for a small company.
Explain the importance of cash management to the success of the small business.
Differentiate between cash and profits.
Understand the five steps in creating a cash budget and use them to build a cash budget.
Describe fundamental principles involved in managing the “Big Three” of cash management: accounts receivable, accounts payable, and inventory.
Explain how bootstrapping can help a small business avoid a cash crunch.