Budget Report: Analysis, Financing Sources, Ratio Calculation, and Conclusion

Budget Report

Table of Contents
Introduction-................................................................................................................................................3
Part-A-.........................................................................................................................................................3
Part-B-.........................................................................................................................................................6
Part-C-.........................................................................................................................................................7
Conclusion-.................................................................................................................................................8
References-..................................................................................................................................................8

Introduction-
In this report, Hamble ltd. is analyzed. It is a food packaging and distribution company. It is
operated across London and south east of England. Company wants to expand its business in one
year. Company wants to acquire an existing business that operated in south east of England and
midlands. In this report three scenarios are discussed. In first report company’s budget report is
produced and there is in depth discussion over that. Various funding options that can company
adopt are evaluated. In second scenario financial ratios are calculated and financial performance
of two companies is observed as company wants to acquire an existing business. In third scenario
it is observed that why there is decrease in consumer demand due to pandemic. What
improvements should be done by company to increase sales.
Part-A-
(1) Budget Report-
Budget Report
Months April May June July August September Total
Income
Credit Sales 9500 8000 6000 11000 12350 14000 60850
Cash Sales 600 620 900 500 350 800 3770
Cash in hand 90 90
Total income 10100 8710 6900 11500 12700 14800 64710
Expenses
Credit Purchase 5800 8000 8700 6300 5200 5000 39000
Borrowings 1000 1000
Over heads 2200 2200 2200 2200 2200 2200 13200
Current Liabilities 100 100
Delivery Vehicles 1250 1250
Total Expenses 8000 10300 12150 9500 7400 7200 54550
Total Income 2100 -1590 -5250 2000 5300 7600 10160
(2) Discussion of budget report-