ABSTRACT
The financial plan and viability analysis must provide an evaluation and correction of the company's direction. This chapter defines the financial objectives of the company, identifying the necessary financing and carrying out a cash flow forecast. Financial planning is the process of estimating the capital required for the constitution and operation of the business. Financial planning is very important to the promoters and potential investors. The analysis of an income statement is very easy: if the company's revenues and gains arc greater than its expenses and losses, then the income statement will show a net profit; on the other hand, if the company experiences greater expenses and losses, then the income statement shows a net loss. The company's assets must always equal its liabilities plus owner equity. The payback represents the amount of time needed to recover the initial investment made on the project.
