Investment Plan for 2018

This presentation discusses the investment plan for 2018 for Forsyth Travel. It covers the background of the organization, the significance of capital investment, and the idea of the presentation. It also includes information about the financial performance and the statement of position for the business loan. The presentation concludes with the budgeted income statement for 2018 and references.

MANAGING PEOPLE AND
SYSTEMS

Covered content
• Introduction
• Background of Forsyth Travel
• Capital investment
• Significant of capital investment
• Idea of presentation regarding investment plan for 2018
• Financial performance
• Conclusion
• Reference

Introduction
Investment plays an important role in growth of business.
Capital investment refers the investment of funds in
organisation for expansion of their business activities and
exploring new ideas. Forsyth is travel organisation which
identifies thy new opportunities to expand their business.
They want to take the advantage from current emerging
trends in holiday industry.

Introduction
Investment plays an important role in growth of business.
Capital investment refers the investment of funds in
organisation for expansion of their business activities and
exploring new ideas. Forsyth is travel organisation which
identifies thy new opportunities to expand their business.
They want to take the advantage from current emerging
trends in holiday industry.

Background of Forsyth Travel
Forsyth is an organisation which founded by Julia and Tim
Forsyth at the end of 2015 as travel company. The main
business activities of organisation is to arrange the trips to
Norway. The main motivation to start their new start-up is
coming after the effect of Brexit. Before 2015 both Tim and
Julia are working separately.

Capital investment
It is refers as the money which is invested in business by the
owner and investors with the expectation of earning income.
They have the plan that the amount which is invested in
organisation is recovered from the business activities over
several years. The different sources from where an
organisation raise funds are banks, equity investors, financial
institutions, angel investors and venture capital.

Significance of capital investment
Importance of capital investment decisions is gathered through
the analysis of expected future returns which attained by the
organisation with the help of their present investments.
• Link of investments with objectives: Such investments have
direct link with an objective of Forsyth about survival and
growth. They make major investments in fixed assets and
other services.

Idea of presentation regarding investment
plan for 2018
The owner of Forsyth, Julia and Tim makes many plans for
2018 regarding expansion of their business operations and
taking their business to the next level. Employment of travel
and tourism student and second year marketing student for
attraction of large number of tourists

Financial performance
As mentioned in the case about the company which is
selling self-catering apartment-weeks at Storartet Apart
Hotel in Floen in the west coast of Norway. It is one of the
primary reason that consists with persuaded about the
purchase of Storartet Aparthotel was a great deal but it it not
just about the apartment. But there are certain other spaces.

Statement of position for the Business Loan
Year Year Interest Total Interest Balance
1 £27,000.00 £27,000.00 £627,000.00
2 £28,215.00 £55,215.00 £655,215.00
3 £29,484.68 £84,699.67 £684,699.68
4 £30,811.49 £115,511.16 £715,511.16
5 £32,198.00 £147,709.16 £747,709.16
6 £33,646.91 £181,356.07 £781,356.07

Graphs

Continue..

Incomes statement for the end of 2017
Income statement of Forsyth Travel for 2017
Particular Amount
Sales:
Luxury 552*12*46 304704
Standard 850*25*46 977500
Total sales 1282204
Less: Variable costs
Luxury 400/107.5*100 372.09
Standard 55/107.5*100 51.16
Total variable 423.26
Gross profit 1281780.74
Less: Fixed cost
Marketing 85000
Office rent 14000
Salaries 200000
Depreciation 1700
Travel and subsistence 15000
Office Sundry items 1250 316950
Net profit 964830.74

Occupancy rates for 2018 according to
current plans
Apartment sold used apartment Occupancy rate
Luxury 552 39.3723252496
Standard 850 60.6276747504
Total 1402

Break-even points for 2018 according to
current plans
Luxury 552 Standard 850
less: variable
costs
372 Less: Variable
costs
51
Contribution 180 Contribution 799
Less: F.C 316950 316950
BEP 1760.833333
3333
396.683354192
7

Forecasted income statement for 2018
Budgeted Income statement of Forsyth
Travel for 2018
Particular Details Amount
Sales:
Luxury 552*12*46 304704.08
Standard 900*25*46 1035000.00
Total sales 1339704.08
Less: Variable costs
Luxury 400.00
Standard 55.00
Total variable 455.00
Gross profit 1339249.08
Less: Fixed cost
Marketing 85000
Office rent 14000
Salaries 200000
Depreciation 1700
Travel and subsistence 15000
Office Sundry items 1250 316950.00

Incomes statements with extra
investments

Occupancy rate for 2018
Occupancy rate for 2018 after
extra investment
Occupancy rate
Luxury apartments 552 38.02%
Standard apartments 900 61.98%
1452 100.00%

Break-even point for extra investments
Break even points for 2018
Luxury apartment 552 Standard
apartments
900
Less: Variable costs 400 Variable cost 55
Contribution 152 Contribution 845
Fixed cost 343950.0
0
343950
Break even units for 2018 2263 407

Conclusion
From this particular presentation, it has been seen that the
overall results are delivery more positive outcomes for Juila
and Tim. It is essential to make use of all net incomes and
gains that can assist in getting more reliable and accurate
outcomes in coming time.

References
Csiki, R., Flextronics AP LLC, 2015. Systems and methods for
managing data in an intelligent television. U.S. Patent 9,167,186.
Malik, D., Koch, R.A., Hill, P. and Anderson, R.A., AT&T Intellectual
Property I LP, 2012. Methods, systems, and products for managing
communications. U.S. Patent 8,271,591.
Blacker, K. and McConnell, P., 2015. People Risk Management: A
Practical Approach to Managing the Human Factors that Could Harm
Your Business. Kogan Page Publishers.

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