Understanding Finance: Sources of Funding, Ratio Analysis, and Budgeting

UNDERSTANDING
FINANCE

Table of Contents
PART-A...........................................................................................................................................3
Answer 1......................................................................................................................................3
Answer 2......................................................................................................................................3
Answer 3......................................................................................................................................3
Answer 4......................................................................................................................................4
PART-B...........................................................................................................................................5
Answer 1......................................................................................................................................5
Answer 2......................................................................................................................................5
PART-C...........................................................................................................................................6
Answer 1......................................................................................................................................6
Answer 2......................................................................................................................................6
REFERENCES................................................................................................................................1
APPENDIX......................................................................................................................................2

PART-A
Answer 1
In excel
Answer 2
The best mode of resolving the issue of cash budget is to have a careful check over the
inflows and outflows. Accordingly taking of adequate steps including scratching out payables,
making selling of non-useful assets, reduction of expenses, raising of inflows in order to mitigate
annual expenses are few steps and solution with respect to Hamble Ltd.
Answer 3
Personal funding:
As per this source capital is being used as a source of fund. Saving and personal funds of
the owners are also included (ME, 2019).
Advantages:
Personal funding enable the business owner to make arrangement of finance at low risk
along with high security. Likewise, owner exactly know that how much finance will be made
required in the business with regard to its running. In the same way it is a time saving technique.
Disadvantages:
It may have a negative impact over the family and personal life. Likewise, it involves a
great percentage of risk of loosing of money.
Debt:
This is also a good source of funding by which funds will be made arranged through
debts. This will lead to have availability of funds easier.
Advantages:
It includes division of risk and easy accessibility to funds. Likewise, it will lead to raise
high percentage of liquidity along with decrease in risk impact.
Disadvantage:
It will raise the expense of company in terms of making payment of interest which need
to paid as fixed expense. Likewise, it make difficult for the company with regard to debt
repayment.