Business Finance: Financial Planning and Statements Analysis

This report analyzes financial planning tools and financial statements, focusing on a specific business's financial health. It examines cash flow and break-even analysis, demonstrating the business's potential for growth and profitability. The report includes an analysis of financial statements like the statement of comprehensive income and statement of financial position, providing insights into the business's net worth and profit generation. Financial ratios are also explored to assess the business's performance. The conclusion highlights the suitability of this business model, its growth potential, and the factors influencing its success. The report concludes with a positive outlook, emphasizing the potential for expansion and favorable outcomes in the business's operational environment.

BTEC LEARNER ASSESSMENT SUBMISSION AND DECLARATION
When submitting evidence for assessment, each learner must sign a declaration confirming that
the work is their own.
Learner Name: Said Nosir Lutfullakhonov
Assessor Name: Hıkmatulla Fayzullaev
BTEC Programme Title: Pearson BTEC Internatıonal Level 3 Busıness
Enterprıse and Enterpreneurshıp
Unit or Component Number and
Title: Unit 3: Business Finance
Assignment Title: Efficient use of financial planning tools and
financial statements
Date Assignment Submitted: 05.02.2022
Please list the evidence submitted for each task. Indicate the page numbers where the evidence
can be found or describe the nature of the evidence (e.g. video, illustration).
Assignment task reference Evidence submitted
Hıkmatulla Fayzullaev Important info from presentations
Learner declaration
I certify that the work submitted for this assignment is my own. I have clearly referenced any
sources used in the work. I understand that false declaration is a form of malpractice.
Learner signature: Date: 05.02.2022

Student ID: 1
Table of Contents
1.0. Introduction...................................................................................................................2
2. Research Methodology....................................................................................................3
3.0. Cash flow and break even analysis...............................................................................4
4.0. Financial statements.....................................................................................................6
5.0. Financial ratios.............................................................................................................8
5.1 Conclusion.....................................................................................................................9
Reference list.....................................................................................................................10
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Student ID: 2
3.2. CASH FLOW FORECAST
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Opening balance 20$ 1 770$ 3 520$ 5 270$
Sales inflows 22 500$ 22 500$ 22 500$ 22 500$
Total Cash in 22 520$ 24 270$ 26 020$ 27 770$
Material 9 000$ 9 000$ 9 000$ 9 000$
Wages 6 750$ 6 750$ 6 750$ 6 750$
Other Expenses 5 000$ 5 000$ 5 000$ 5 000$
Total Cash out 20 750$ 20 750$ 20 750$ 20 750$
Closing Balance 1 770$ 3 520$ 5 270$ 7 020$
3.3. BREAK EVEN ANALYSIS
Units Revenue Fixed cost Variable cost Total cost Profit
40 200,00$ 120,00$ 140,00$ 260,00$ -60,00$
50 250,00$ 120,00$ 175,00$ 295,00$ -45,00$
60 300,00$ 120,00$ 210,00$ 330,00$ -30,00$
70 350,00$ 120,00$ 245,00$ 365,00$ -15,00$
80 400,00$ 120,00$ 280,00$ 400,00$ -$
90 450,00$ 120,00$ 315,00$ 435,00$ 15,00$
100 500,00$ 120,00$ 350,00$ 470,00$ 30,00$
110 550,00$ 120,00$ 385,00$ 505,00$ 45,00$
120 600,00$ 120,00$ 420,00$ 540,00$ 60,00$
130 650,00$ 120,00$ 455,00$ 575,00$ 75,00$
Selling
Price
Labour
cost
Material
cost
Total
varaible cost
Contribution
margin
Break enen
point in units
5,00$ 1,50$ 2,00$ 3,50$ 1,50$ 80,00
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Student ID: 3
40 50 60 70 80 90 100 110 120 130
$-
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
Break even chart
Revenue Fixed cost Total cost
3.4. ANALYSIS OF CASH FLOW FORECAST AND BREAK EVEN CHARTS
This kind of business, according to the estimates, is in the good progress and increasing its
profits every quarter. Furthermore, because they do not incur considerable additional costs, their
break-even point is low, resulting in a positive closing balance.
Furthermore, this shop is exempt from paying huge sums of profit tax. Only a change in
the electrocity and land tax rates can have an impact on the small company.
Even yet, we can't say that these assumptions are true because underestimating prices or
being overly optimistic about sales can lead to outcomes that are dramatically different from
what we anticipated.
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Student ID: 4
Despite the fact that this type of business is unusual, it is quite likely that it will expand
and the number of branches will grow as a result of the positive improvements that will lead to
favorable outcomes in our country.
Although this type of business is unusual, it is likely that in the future it will delight
people not only with delicious coffee, but also with other unusual things, and with a high
probability this business will expand and the number of branches will grow, leading to favorable
results.
4.0. FINANCIAL STATEMENTS
A statement of comprehensive income is a document that shows whether a business
generated a profit or loss after all expenses have been deducted.
A statement of financial position is a document that shows how an organization's net
worth is calculated by balancing what it owns against what it owes.
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Student ID: 5
4.1. FINANCIAL STATEMENTS
$ $
Sales 275 000,00
Less Returns in - 275 000,00
Less Cost of Good sold
Opening Inventory 68 200,00
Purchases 120 000,00
Less Return out -
Carriage Inwards 5 700,00
Less Closing Inventory 50 000,00 143 900,00
Gross Profit 131 100,00
Less Expenses:
Salaries 60 000,00
Warehouse rent 3 000,00
Carriage out 2 100,00
Insurance 1 000,00
Motor Expenses 2 500,00
Offi ce expenses 500,00
Lighting and heating 1 000,00
General expenses 2 100,00 72 200,00
Net Profit 58 900,00
Statement of Comprehensive Income for the year ended 31 December 2021, Coffe shop
Non current Assets $ $
Premises 45 000,00
Fixtures and Fitting 3 000,00
Motor Vehicles 20 000,00 68 000,00
Current Assets
Stock available 15 000,00
Debtors 27 000,00
Bank 5 000,00 47 000,00
Total Assets 115 000,00
Current liabilities
Creditors 35 000,00 35 000,00
Nett Assets
Capital 65 000,00
Add retained profit 35 000,00
Less Drawings 20 000,00 80 000,00
Total Liabilities and Equity 115 000,00
Statement of Financial Position for the year ended 31 December 2021, Coffe shop
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Student ID: 6
5.0. FINANCIAL RATIOS
Gross profit margin Current ratio Trade Receivable
48% 1,34 36 days
Mark Up Acid Ratio Trade Payables
91% 0,91 106 days
Net Profit margin Inventory turnover
21% 150 days
Return on Capital Employed Average inventory
74% 59 100,00
Liquidity EfficiencyProfitability
5.1 CONCLUSION
Finally, as previously said, this form of business is well suited for our country due to its
avaible cost and good quality. In addition, many people prefer this drink, implying that this
business is experiencing a constant growth of approximately 5%.
Word count: 909
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Student ID: 7
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