Financial Reporting Solution Assignment (Doc)
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Added on 2021-02-21
Financial Reporting Solution Assignment (Doc)
Added on 2021-02-21
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Financial Reporting
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................13 COST / VOLUME / PROFIT ANALYSIS..................................................................................1Gross and Operating Margins.....................................................................................................1Profit Potential and Duration......................................................................................................1Fixed and variable cost...............................................................................................................1Break even analysis.....................................................................................................................1Time to break even......................................................................................................................4Time to positive cash flow..........................................................................................................4Venture and working capital needs.............................................................................................64 MARKETING PLANS.................................................................................................................64.1 DIRECTIONS OF COMPANY AND STRATEGIC INTENT................................................64.1.1 The Identity........................................................................................................................64.1.2 The vision...........................................................................................................................74.1.3 The mission........................................................................................................................74.1.4 Core values.........................................................................................................................74.2 BUSINESS OBJECTIVES........................................................................................................84.3 REVIEW OF BUSINESS ENVIRONMENT............................................................................84.3.1 Focus for market segment..................................................................................................94.3.2 Core Business segments...................................................................................................104.3.3 Market timing...................................................................................................................104.4 STRATEGIC MARKETING OBJECTIVES..........................................................................104.4.1 Market penetration...........................................................................................................104.4.2 Market development........................................................................................................104.5 COMBINED MARKETING STRATEGIES FOR MARKET DEVELOPMENT ANDPENETRATION............................................................................................................................114.5.1 Internal marketing............................................................................................................114.5.2 External Marketing..........................................................................................................114.5.3 Interactive marketing.......................................................................................................11
4.6 RISK ASSESSMENT..............................................................................................................114.7 CROSS FUNCTIONAL DEPENDENCY...............................................................................114.8 THE MARKETING BUDGET................................................................................................115Design & Development Plan.......................................................................................................116. The Management Team.............................................................................................................117. Operations Plan..........................................................................................................................118. Sustainability..............................................................................................................................119. Schedule for Implementation.....................................................................................................1110. Business Contacts....................................................................................................................1111. Financial Projection.................................................................................................................1112. Proposed Offer.........................................................................................................................11REFERENCES..............................................................................................................................12
INTRODUCTION3 COST / VOLUME / PROFIT ANALYSISGross and Operating MarginsGross margin refers to the percentage gross profit cover of entire revenue amount. Gross profit for each projected year is expectedto be 70%. Cost of production of edible items and revenue are assumed to increase at constant rate each year. However, fixedexpenses are expecting to decline after first year and net profit percentage may increase from 12% to 40% at end of year 5. Thus, stiffcontrol on expenses will lead to increase in profit in the business.Profit Potential and DurationBusiness have a good profit potential but in first year loss is observed in the business. Loss duration will be of one year and it isexpected that thereafter good amount of profit will be earned in the business.Fixed and variable costLike every business in restaurant business also fixed and variable expenses are incurred. In the prospective business also fixedand variable expenses will be incurred. As part of fixed cost modular kitchen expense is covered in the projection. Order tomanufacture modular kitchen will be placed with the relevant supplier or company. In the variable expenses HR cost is included in theprojections. 5 waiters will be kept in the business premises and £7 will be hourly pay. Total working hours will be 8hrs. Hence, totalcost for day for each waiter will be £56. Overall, HR cost of day will be £280. Overall, cost of HR for the month will be £8400.Administrative expense is another one that will be incurred in the business. Its amount is kept between £3000 to £4392 for five years.Break even analysisFor break even, analysis few inputs are required which are calculated. In order to compute those inputs some facts are taken in toaccount which are given below.1
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