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For my assignment I have been asked to demonstrate compentence in handling key business calculation and basicly demonstrate my understandings of the revelant financial flows

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Introduction For my assignment I have been asked to demonstrate compentence in handling key business calculation and basicly demonstrate my understandings of the revelant financial flows. I am able to choose my own business, provided with information needed. For my chosen business I need to do the following: Task 1: I have been asked to explain how business may calculate break even in order to indicate profitable activity levels, to adapt break-even calculations for selected business in the light of changing cost and sale price data, then to recommend appropriate coursers of action for a selected loss making business. Task 2: In task 2 I have been asked to explain the meaning of cashflow with reference to a spreadsheet containing at least six sets of monthly data, to explain how a profitable business could go bankrupt due to cash flow problems and to recommend ways in which a selected business might control its cash flow most effectively. Task 3: I this section I have been asked to explain how a budget midht be used to monitor expenditure for one cost centre for my selected business, explain the importance of budget variance information to managers of my selected business and to recommend ways in which managers might deal with a cost centre that consistenly records an unfavourable budget variance in the caseof my selected business. ...read more.


P2 Here I am going to explain what is the meaning of cash flow. Cash flow forecast is a spreadsheet table of all my incomings and outgoings in last six months, Cashflow is to help you to know where your business is standing in financially. Cash Flow Forecast Name of the organisation: Paul's Paradise Sandwiches Period: January-July Months January February April May June July TOTAL � � � � � � � RECEIPTS Sales of Products 6,500 6,500 6,200 6,000 6,500 6,500 38,200 Capital 1000 1000 Loan 106,000 106,000 Grant TOTAL RECEIPTS 113,500 6,500 6,200 6,000 6,500 6,500 145,200 PAYMENTS Purchase of the premises 95,000 95,000 Product purchases 900 900 780 700 900 900 5,080 Shop Equipment 12,000 0 0 0 0 0 12,000 Marketing 700 200 200 200 200 200 1,700 Telephone Bills 150 150 140 100 150 150 840 Gas Bills 200 200 170 130 200 200 1,100 Electricity Bills 120 120 100 80 120 120 660 Loan repayments Total Payments 109,070 1,570 1,390 1,210 1,570 1,570 116,380 Opening Bank 0 4,430 9,360 14,170 18,960 23,890 0 Receipts 113,500 6,500 6,200 6,000 6,500 6,500 145,200 Payments 109,070 1,570 1,390 1,210 1,570 1,570 116,380 Closing Bank 4,430 9,360 14,170 18,960 23,890 28,820 28,820 This is my closing bank at the beginning of the year. This is my closing bank in 6 months, it shows that I have made profit �28,820 in June. ...read more.


Then I will send the INVOICE back to my suppliers with a CHEQUE that has the exact amount of money stated that is required for. CHEQUE is peace of document that comes with your bankcard when you open your bank account, it is used to buy goods with as you can do with bankcard. What I have to do with CHEQUE is to write down the companies name that I am paying to the amount of money they require for, the date when is the CHEQUE is being send and my personal signature as the proof that the CHEQUE is coming from me. If the delivery does not turn up on the date that is stated on the delivery note I will be forced to send document to my supplier called CREDIT NOTE. CREDIT NOTE is for the suppliers to know that I did not get my goods delivered to me and I require for some actions to be taken from my suppliers. When the goods arrive at my premises I will also get a CASH SALE RECEIPT to proof that I have received my goods stating the goods that I have meant to get. If I am a regular customer at the store I will be send a STATEMENT OF ACCOUNT at the end of the month, which states what I have purchased from the company and how much money I have spend on the products in the past month. ?? ?? ?? ?? Unit 3 Investigating Financial Control 1 ...read more.

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