[SOLVED] Cash Flow and Balance Sheet Analysis

The provided assignment is a detailed financial analysis of a company's cash flow and balance sheet over five years. It includes total deliveries, product sales (cloths and accessories for women and kids), average selling price, total revenue, percentage of total sale, total deliveries by product category, and net cash flow. The document also breaks down cash inflows and outflows, including advertising, salary, payments to suppliers, interest on loan, repair and maintenance, installing computers, and net cash flow. The summary is presented in a tabular format for easy comparison and analysis. This assignment would be suitable for students studying finance, accounting, or business management.

Business Plan Components

 Cover page
BUSINESS PLAN
 Table of content
Table of Contents
TASK 1......................................................................................................3
1 Opportunity recognition...................................................................3
2 Determining the risk associated with sub-sector.............................6
3 Introducing the capability of business in satisfying the investors.....7
CONCLUSION............................................................................................9
REFERENCES.............................................................................................9
 Executive summary The business at preparatory stage need to have analysis over the
market and the fruitful strategic plans for initiating the operations.
In the present report there will be discussion based on new launch
of “Icon-Trend”, an online vintage fashion business which going to
be start its operations to facilitate the products to consumers on
online sites. These will have the initially level of operations in UK
and then they will plan for expansion. The report contains
promotional or marketing plans, management of operations etc.
There will be forecasting data sets that will help the managerial
professionals in analysing adequate requirements of funds to
initiate the business and deliver the satisfactory level of goods and
services to their buyers. The give study will also helpful in terms of
attracting the stakeholders to make their valuable capital
investments in the firm.

TASK 1
1 Opportunity recognition
To initiate a business on long terms basis, currently it is necessary
to have the online website and operations. The professionals at
“Icon-Trend” have planned to launch an online vintage fashion
business which will have wide range of textile and accessories.
There will be influence of various huge brands such as Adidas,
Nike, Gucci, Peter England, Provogue, Oxemberg etc. that will be
helpful in terms of attracting the large numbers of consumers of all
the categories (Mason and Stark, 2004). On the other side, it can be
said that to have the business over online segmentation which will
be beneficial for consumers as to have adequate informations about
the products, brands, prices etc. They can make comparison
between such products and prices. However, in terms with
launching the business on online segmentation there will be need
of having proper marketing as well as association of various
brands. There will be need to plan the suppliers and distributors as
to facilitate the products to consumers on prompt basis.
 Objectives of business: In accordance with the aims and targets of the “Icon-Trend” to
deliver the prompt products and services to the consumers.
However, the main objective of firm is to facilitate the adequate
and satisfactory level of services to the consumers (McKeever,
2016). They have planned to deliver the products most possibly on
the same date or within a week. They decided to have proper
delivery channels and suppliers of the different brands that will be
beneficial for developing the unique identity among buyers.
 Market segmentation: The business is going to initiate the operations over the online site
and that will require proper marketing and promotional techniques
in terms of attracting the wide numbers of consumers as well as
have the adequate profitability (Boiko, 2016). The nature of “Icon-
Trend” is to serve the products which are manly relevant with
textile and accessories for men, women and kinds. Therefore, it can
be said that, these operational segmentation is having huge
competence as there are various organisations who are dealing in
the same product line and same market platform.
 Target consumers: In order to launch a fashion business the main consumers are
women, men and kinds. However, as per the influence of various
brands and unique products it will be helpful in terms of having the

adequate numbers of buyers (Brewster and Hegewisch, eds., 2017).
The online business will be convenient and helpful for theme as
they will have their desired goods on their door steps which will be
quick and within time limit.
 Promotional strategies: In accordance with having attraction of consumers and
stakeholders which will make their investment and make
collaboration with the firm in operational aspects, there is need to
have appropriate strategies for “Icon-Trend”. However, with the
help of marketing mix it will be easy for the professionals to have
better consumer retention, profitability, growth and efficiency in
the operations (da Silva and Las Casas, 2017). Therefore, it can be
understand as follows:
Product: To have the better growth and profitability on the long
term basis there is need to have unique products as well as quality
of them. However, “Icon-Trend” is planning to operate the
business on the online segmentation that will be beneficial in terms
of attracting the large number of consumers. The managerial
professionals have planned invite various big brands and their
products to be dealt over its online site (Knowles, Holton III and
Swanson, 2014). They have decided to facilitate the products
which are mainly belongs to men, women and kinds. There will be
products of vintage fashion and accessories that will be unique and
attractive to consumers.
Price: To have the profitable gains as well as have the appropriate
numbers of buyers there is need to have better pricing strategies
into consideration. However, it can be said that it is essential to
have the prices that will be beneficial for the organisation in terms
of having the appropriate profitability as well as revenue
generation (Loan, Sustainability and Liabilities, 2016). However,
the costs of delivering the products to the consumers will be cheap
and affordable.
Place: There is no such issue of placing the store or having an
operational unit. Therefore, there will be deals which are to be
made over the online site of “Icon-Trend”, In these regards there
will be requirement of a consumer care centre where installation of
appropriate numbers of computers and appointment of talent and

qualified employees to prereform these operational tasks (Lopes,
2015).
Promotion: The professionals at “Icon-Trend” has decided
to have appropriate marketing of the organisation over the social
media, television, online sites, news papers etc. However, there
have also planned to have promotion as to place hoardings,
painting graffiti etc. Therefore, it will be beneficial in attracting
consumers and making appropriate promotion (McKeever, 2016).
Operational Structure: In accordance with have in the favourable
operational activities in the organisation there is need to have
appropriate numbers of stakeholders. There will be requirement of
highly qualified and talented employees to operate the online
business, a distributional channel to make the prompt deliveries to
end consumers as well as appointment of the leaders and managers
who will execute the business tasks and motivate the workforce to
achieve targets (Mason and Stark, 2004). There will be teams and
various department which have the difference in the operational
activities can be understand as per the below listed chart such as:

2 Determining the risk associated
with sub-sector
In accordance with the online operations of “Icon-Trend” there has
been various risks associated with such segmentation of work.
There will be risks which are mainly relevant with the internet and
IT crimes. There will be risk of losing the confidential data which
in turn affect in losing the attention of consumers (McKenzie,
2017). There will be influence of various substitute products and
rivalries which will be non profitable for the firm.
Competitors: There has been various huge brands and online
giants are available in the market they are highly capable of
making the satisfactory of services to the consumers. They have
been operating across the national boundaries (Types of Business
Risk, 2013). However, in these regards “Icon-Trend” will have
challenging operational activities by various brands and online
businesses such as Amazon, Flipkart, etc. To be preferable form
consumers there is need to have better pricing strategies as well as
delivery services that will be helpful for them in terms of creating
the unique identity among consumers.
Substitutes: This the threat to every business and to its products
tat there will be availability of the large number of duplicates,
substitutes and the products which are affecting the consumers
preferences and making the unique changes in the operations of the
business (Boiko, 2016). However, it will be non profitable as these
substitute are being available in the market at lower prices which in
turn non beneficial for “Icon-Trend” as to lose the buyers and also
the brand image.
Confidentiality: This is the main risk which are need to be
considered by the professionals in the organisations. The
confidentiality of the information is the prime responsibility of the
professionals. To have the business over the online scale this is the
risk which are need to be overcome and need to be resolved by
managers (Brewster and Hegewisch, eds., 2017). Therefore, as to
have cured with such threats, “Icon-Trend” is need to have proper
installation of software, anti-viruses and security system which will
prevent the business from losing the confidential data, hacking and
break downs of the sites.

3 Introducing the capability of
business in satisfying the
investors
The business operating over the online segmentation will be
beneficial and have the fruitful gains in the future. Therefore, the
managers and professional has plans to expands the operations out
of the national boundaries as to widely spreading the selling and
distribution channel (da Silva and Las Casas, 2017). Therefore, for
such operations there will be requirement of funds for the
operations, However, the revenue gathering of the business will be
from various sources such as:
Sources of finance:
Owner's equity: The initial level of operation will be made
by having the personal savings from Owner and partners.
Therefore, there is need to look for the bank balance and the assets
of the owner which will be beneficial as to generate the adequate
amount of funds for the operations (Doyle, 2017).
Investments: “Icon-Trend” will have financial help as if
they also individual to have equity of the firm. However, the
shareholders are the main source to gathering the funds for the
operations as well as there is need to have plans for dividend
policies and payments made to them (7 sources of start-up
financing, 2017).
Bank loan: the business will have monetary benefits as they apply
for loans form the banks. However, in these regards they will have
to make payment of interest over the amount of loan they have
taken from the bank (Knowles, Holton III and Swanson, 2014).
However, it will be most favourable sources for the development
of the business as they can be apply for the funds they actually
need to operate the business.
 Forecasting of the cash flow
for 5 years of period
Appendices
 Growth strategy: In consideration with having the adequate growth and
profitability which will be as if the Research and development
team of the organisation make efforts to develop the new products
(Loan, Sustainability and Liabilities, 2016). However, in
consideration with such operations it can e said that there is need to
have favourable innovation in the operational activities as well as

better corporate governmental will help the firm in managing the
financials.
 Crafting plan which
satisfies investors
In relation with developing a plan that will be helpful to
fetch the adequate confidence of the investors of “Icon-Trend”
there is need to have proper strategies that will bring the
appropriate trust and favourable operational help to the employees.
However, the plans is:
1. There is need to have a survey and identify the fruitful
investors to the firm. Therefore, to develop the business as
to meet the adequate completion it is necessary to have
collaboration with the market giants who will be helpful to
the firm in having the adequate business operations.
2. After analysing the investors who will be beneficial in
terms of raising the capital funds of the firm there is need to
target them as well as make the adequate increment in the
profitability as well as efficiency of the firm. Here the
professionals has to plan the adequate dividend polices
which bring the profitable returns to such investors.
3. In terms with having the long terms investments there is
need to engage the previously active investors. Therefore, it
included issue of bonds, bonus dividends as well as
increment in the returns payable to them.

CONCLUSION On the basis of above report the plan to operate the online
vintage fashion business, “Icon-Trend” will have the favourable
operations on long term. However, there has been presentation of
the forecasted cash flow of the firm on the of 5 years of operations
and it seems to have increment and growth in the operations.
Further, it can be said that the business will have profitable gains
as they manage their risks as well as financial health.
REFERENCES Books and Journals
Boiko, V. I., 2016. METHODS OF DESIGNING AND
IMPLEMENTING A BUSINESS PLAN IN THE
CULTURAL SECTOR OF THE REGIONS OF THE
COUNTRY. In PERSPECTIVE DIRECTIONS OF
SCIENTIFIC RESEARCHES (pp. 169-172).
Brewster, C. and Hegewisch, A. eds., 2017. Policy and Practice in
European Human Resource Management: The Price
Waterhouse Cranfield Survey. Taylor & Francis.
da Silva, E. C. and Las Casas, A. L., 2017. Sports Marketing Plan:
An Alternative Framework for Sports Club. International
Journal of Marketing Studies.9(4). p.15.
Doyle, J., 2017. Reverse Mortgage Part of Financial Planning.
Knowles, M. S., Holton III, E. F. and Swanson, R. A., 2014. The
adult learner: The definitive classic in adult education and
human resource development. Routledge.
Loan, C. F., Sustainability, F. and Liabilities, N. F., 2016.
TREASURY MANAGEMENT. Policy.4(1). p.1.
Mason, C. and Stark, M., 2004. What do investors look for in a
business plan? A comparison of the investment criteria of
bankers, venture capitalists and business angels.
International small business journal. 22(3). pp.227-248.
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D., 2017. Identifying and spurring high-growth
entrepreneurship: experimental evidence from a business
plan competition. American Economic Review. 107(8).

pp.2278-2307.
Online
Types of Business Risk. 2013. [Online]. Available
through :<http://smallbusiness.chron.com/types-business-
risk-99.html>.
7 sources of start-up financing. 2017. [Online]. Available
through :<https://www.bdc.ca/en/articles-tools/start-buy-
business/start-business/pages/start-up-financing-
sources.aspx>.
Appendices:
Budgeted cash flow for operations for “Icon-Trend”
Particulars
Initial
investmen
t 2018 2019 2020 2021 2022
Percentage of total sale 0.04% 0.04% 0.04% 0.04% 0.04%
Total deliveries 1500 1820 2980 3698 4264
Product (men)
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Average selling price 2500 2500 2500 2500 2500
Total revenue 3750000 4550000 7450000 9245000 10660000
Percentage of total sale 0.03% 0.03% 0.03% 0.03% 0.03%
Total deliveries 2000 2521 2981 3590 4860
Product (women)
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Average selling price 3750 3750 3750 3750 3750
Total revenue 7500000 9453750 11178750 13462500 18225000

Percentage of total sale 0.04% 0.04% 0.04% 0.04% 0.04%
Total deliveries 1600 1890 2697 3598 4981
Product (Kids)
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Cloths and
Accessories
Average selling price 2680 2680 2680 2680 2680
Total revenue 4288000 5065200 7227960 9642640 13349080
Total cash inflows 15538000 19068950 25856710 32350140 42234080
Cash outflows
Advertising 2000 2000 2000 2000 2000
Salary 45000 45000 45000 45000 45000
Payments to suppliers 35000 45900 59320 65810 70000
Interest on Loan 19000 19000 19000 19000 19000
Repair and
Maintenance 18000 0 59000 0 15900
Installing Computers 75000
Total Cash outflows 75000 119000 111900 184320 131810 151900
Net cash flow -75000 15419000 18957050 25672390 32218330 42082180
Opining cash balance 2500000 2575000 12844000 6113050 19559340 12658990
Closing cash balance 2575000 12844000 6113050 19559340 12658990 29423190