Cash Flow Statement of Grow Management Consultants

Running head: MANAGE FINANCES
Manage Finances
Name of the Student:
Name of the University:
Author’s Note

MANAGE FINANCES
1
Table of Contents
Task 2...............................................................................................................................................2
Growth Management Consultants...............................................................................................2
Finance Report.............................................................................................................................2
Introduction..................................................................................................................................2
Analysis of 2016/17 performance of the business.......................................................................2
Overall business performance analysis and analysis of the performance of each of the income
for 2016/17...................................................................................................................................3
The Compliances Requirements..................................................................................................5
Task 3...............................................................................................................................................6
Bibliography....................................................................................................................................8

MANAGE FINANCES
2
Task 2
Growth Management Consultants
Finance Report
Introduction
The current assignment focuses on analyzing the cash flow statement of Grow
Management Consultants. The analysis would help to effectively reveal the business
performance of the company over the periods. Along with the business tends of the company, the
performance of the company over the period will be considered. The assignment also focuses on
identifying the strategic goals of the business and the improvement of the company will be
reflected by analyzing the cash flow statement trends.
Analysis of 2016/17 performance of the business
The cash flow statement of the business is prepared by considering the revenue and cash
expenses which is generate by Growth Management Consultants. In order to establish the current
financial position of the company, the cash flow statement is prepared by the general manager of
the company. For the period of 2016-2017, the cash flow statement is reviewed for Grow
Management Consultants. The senior officials of the company has produced good amount of
revenue from the consultant fee and it is reflected to be $1, 175,600 which is observed to be
more than the budgeted figure. The same is reflected in the contribution to the general cash flows
of the business. The 2015-2016 trends also reflects that the decision taken by the company highly
depends upon consultants fees so as to generate inflows for the operations of the business. The
other activities which helps the company to generate revenue with reference to actual results
does not coincide with the budgeted figure which is projected by the management of the
business. The above statement reflects that there are significant differences in the actual figures
and the budgeted figures. These differences is considered as the fault of judgments on the behalf
of the company’s management.
Overall business performance analysis and analysis of the performance of each of the
income for 2016/17
The management of the company prepares the income statement that reflects the main source of
revenue that is the service provided by the company. The overall revenue of the business is
observed to be in increasing trend but at the same time the profitability of the business is
observed to be declining. It is due to the increasing cost of the overall operations of the business.
Therefore, in order to increase the profitability of the business, the cost of the business
operations needs to be controlled. The income statement prepared by the senior officials of the
company reflects that the company is performing well enough. This is illustrated by considering
the profit and the significant growth off the business. The company generates the maximum
amount of income from the service (consultation) provided by the company. The consultation
service is one of the main source of the revenue and thus, the management is required to take
appropriate steps in order to enhance the profit of the business.
Reasons for profit or loss based on your analysis of the data and research on economic