Financial Statement and Cash Flow Flashcards

1
Q

Capitalized Value

A

Projected flow of income from business converted to PV:

Annual income/capitalization rate

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2
Q

Pro Forma Statement

A

Projects the expected profitability or return of the next year or longer. Estimated excess income over expenses.

Compare to results at year end!

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3
Q

How much should a family ideally save?

A

5-8% of gross income

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4
Q

How much should a family ideally save?

A

5-8% of gross income

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