Explain how your development of the model is informed by the concepts

At the end of this module you should be able to:

Understand why financial literacy matters Understand the purpose of financial statements Have a broad understanding of how the three main financial statements fit together Understand the concept and significance of the break-even point (BEP) Know how to interpret a break-even analysis graph Understand the effect of price and overheads on the BEP Understand the concept of a margin of safety Be aware of the limitations of the break-even analysis Understand the purpose of the Profit and Loss statement Have an elementary understanding of the elements of a Profit and Loss statement Understand the concept of gross margin Know how to calculate gross margin Understand its uses in business management Understand the purpose and inner workings of the cash cycle Understand the cash flow statement Understand the purpose and inner workings of the balance sheet Understand the time value of money Know how to calculate Net Present Value Understand burn rates

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