Financial Statement and Sales Analysis Report

Added on - 01 Oct 2019

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HEWLETT-PACKARDFinancial statementFinancial statement and sales analysisName of the author-Name-[Type the abstract of the document here. The abstract is typically a short summary of thecontents of the document. Type the abstract of the document here. The abstract is typicallya short summary of the contents of the document.]
Table of ContentsTask 1:...................................................................................................................................................3Training Workbook for Sales Team........................................................................................................3An explanation of the following concepts..................................................................................3Using 2 made up sales volume numbers (simple) and 2 existing customers’ sales volume numberscalculate;............................................................................................................................................3The below given table shows the sales volume numbers and 2 existing client’s sales volumenumbers calculation...........................................................................................................................4Assessment of the variable cost and cost which could impact the profitability..........................5A description of your organisation’s management accounting procedures for dealing with thefollowing costs;.................................................................................................................................6An evaluation of these costs and why these methods are used...................................................6Example which shows the step by step analysis of the customer account for the profitability and howit could be used for the sustainable customer performance.................................................................6Task 2:...................................................................................................................................................9Preparation of the financial analysis of company..................................................................................9Evaluating the value of each clients towards.............................................................................9Recommendation for growing the number of these clients in business..............................................9An evaluation of the business and financial risks associated with each account.................................10An identification of any key trends or variances......................................................................11Where you would expect to look for financial data on these accounts (inside and outside yourorganisation)....................................................................................................................................11An identification of who else in your organisation would have a stake in the financial viabilityand performance of these accounts and how you would ensure appropriate access to the data.......12A provision of any proformas for capturing performance and financial data about theseaccounts and the development of contingency plans for possible problems that may arise with thefinancial performance of the accounts.............................................................................................12REFERENCES....................................................................................................................................13
Task 1:Training Workbook for Sales TeamAn explanation of the following conceptsTARGET PROFITABILITY:Target profitability could be defined as profit earned by company that managers anddirectors of company anticipated to achieve in the given time frame. It is the part of thebudget which shows the expected earning of company. It is used to make comparisonbetween the actual and anticipated profit by the company so that proper variance issues andchallenges could be found (Mennen, & Storbacka, 2016).LIFE TIME VALUE CASH FLOW:This life time value cash flow shows present value of the cash inflow and outflowgenerated by the company. It helps in evaluating the market price of company, identifying thepossible future cash value in present. It is further used in the marketing strategies andpreparing the budget for company. Life time value is computed by multiplying the averageorder value with the number of the repeated sales and average retention time (Napoli, et, al.2014).VARIABLE COSTS:The Variable cost is depicts the expenses incurred in busienss which changes with thechanges in the production level. It is based on the production level and changed accordingly.The variable cost is associated with the packing cost, customer discount cost, delivery costand other related cost.FIXED COSTS:The Fixed cost is the amount of expenses which do not vary with the changes in theproduction level. However, it helps in reduction in overall production cost if companyincreases its production level. It is accompanied with the following cost such as wages, rent,interest change of bank and electricity charges (Napoli, et, al. 2014).Using 2 made up sales volume numbers (simple) and 2 existing customers’ sales volumenumbers calculate;
The below given table shows the sales volume numbers and 2 existing client’s sales volumenumbers calculation.FIANNCIAL DATAPARTICULARSsalesquantitysalespricevariablecost %budgeted fixedcostsamplecustomer1300001520%30000customer2250001520%actualcustomer1400001520%customer2200001520%TARGET PROFITABILITYRevenueBudgetedvariablecostPROFITbeforefixedcostsTotalprofitbeforevariablecostLess:fixedcostTARGETPROFITABILITYFormulaSalesVolume *sales priceRevenue *15%----SampleCustomer 1450000675003825001466250300001436250Customer 237500056250318750ActualCustomer 160000090000510000Customer 230000045000255000
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