Operational finance for hospitality and tourism- Homework

Added on - 03 Dec 2019

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Operational finance for hospitality andtourism
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................32 (A) Use of model and its features............................................................................................32 (b).............................................................................................................................................7Analysis and interpretation of financial performance of an organization..................................7CONCLCUSION.............................................................................................................................8REFERENCES................................................................................................................................9INDEX OF TABLESTable 1: Input sheet 1......................................................................................................................4Table 2: Percentage input sheet.......................................................................................................5Table 3: Automatic carry forward of values on which credit and debit amount will be computed.5Table 4: Budget for organization.....................................................................................................6Table 5: Income statement..............................................................................................................7
INTRODUCTIONFinancial modeling is a technique by using which projections are made about the future.By using this method income statement, balance sheet and cash flow statement is prepared. Inthe present case by using financial modeling method budget and income statement is prepared.Model that is prepared is highly flexible and integrated in nature which is its big positive point.When one cell in input table will be altered then other values of the output sheet will alsochanged. Hence, it can be said that every time managers does not need to prepare new budget onpaper. They can be changing values of input sheet can prepare new budget.2 (A) Use of model and its featuresWay or instruction for use of modelIn order to use this model following instructions will be followed.Inserting input data-In order to prepare budget on this spreadsheet it is very importantto enter a value. User of this model can either directly enter values in input sheet sectionof this model or he may first enter values on paper and thereafter can copy same values inexcel sheet. The approach user follow depend on the way in which he feel comfort.Percentage table-Second table in input sheet is a percentage table in which percentage ofcash sale, credit sales, credit purchase and cash purchase will be entered. These cells arelinked to the budget and with change in the values of cell in this table entire budgetvalues will get changed. Thus, user in future if any change comes in projected cash andcredit sales as well as purchase percentage must make changes in values of variables thatare in the percentage table.Automatic carry forward of values on which credit and debit amount will be computed-This is third important table of the input sheet. Under this table formula of IF function ofexcel is inserted. In this table values of previous months are carry forward that are relatedto credit sales and purchase. In order to use this table it is instructed that user must doubleclick on specific value and must change in last two values in formula. For example incase of facilities and room sales one month time is given to debtors. Hence, formula is=IF(C27>C26;C5) and if user think that credit period may change in future then he willmake changes in last two values that are C26 and C5. When by replacing these values