Assignment Managing Financial Resources
19 Pages5136 Words140 Views
Added on 2019-12-03
Assignment Managing Financial Resources
Added on 2019-12-03
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MANAGINGFINANCIALRESOURCES
TABLE OF CONTENTSMANAGING FINANCIAL RESOURCES....................................................................................1Introduction......................................................................................................................................1TASK 1 Sources of finance available to the business.....................................................................11.1 Sources of finance for Restaurant..........................................................................................11.2 Implications of sources..........................................................................................................21.3 Evaluation of sources.............................................................................................................3TASK 2 Implications of finance as a resource................................................................................42.1 Costs associated with the sources..........................................................................................42.2 Significance of Financial Planning........................................................................................52.3 Information needs of different decision makers....................................................................62.4 Impact of finance on financial statements.............................................................................7TASK 3 financial decisions based on financial information...........................................................83.1 Analyse Budget......................................................................................................................83.2 Calculation of unit costs........................................................................................................83.3 Capital Appraisal Methods....................................................................................................9TASK 4..........................................................................................................................................124.1 Major financial statements...................................................................................................124.2 Difference between the statements......................................................................................134.3 Ratio Analysis......................................................................................................................13Conclusion.....................................................................................................................................14References......................................................................................................................................16
Introduction Finance is the backbone of every business whether it is small size or big size. The mostdifficult task in front of the company is the management of financial resources. For that purpose,knowledge of certain financial practices is must. The purpose of this report is understand thesources of finance available for restaurant businesses. The study will show the implications offinance as a resource within business. It will also reflect how the financial decisions are made onthe basis of available information. It will show the application and use of different investmentappraisal methods. At last the report will end in analysing the calculated ratios for the firms. 1
TASK 1 Sources of finance available to the business 1.1 Sources of finance for RestaurantFigure 1 Source of Finance(Source: Bhowmik and Saha, 2013)Sweet Menu restaurant is planning to open two new branches in Central London andCroydon. Business will need amount of £ 300000 and £500000. For that purpose, finance can beraised from two sources which are as follows:Internal Sources Personal savings – It is the most common form of finance available for the entrepreneurs.The three owners can arrange money from their personal savings which has been retainedapart from the business (Abraham, Deo and Irvine, 2008).Retained Profits – It is the amount which is kept after paying of all the debts and profits.These are mainly kept for meeting the future contingencies such as expansion orretrenchment etc.Friends & Family – It is another lender of the last resort option available for the newbusiness. Money can be arranged on the basis of personal relations with friends andfamily members (Ball, Jayaraman and Shivakumar, 2012)2
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