Business Sales and Expense Analysis Report for Loan Application

The assignment focuses on analyzing a retail business's sales and expenses to support a loan application. It involves creating a spreadsheet with sales and expense data over ten months, utilizing auto-sum, auto-format, average formulas, and percentages. The spreadsheet is designed to demonstrate the business's profitability. Additionally, the assignment requires the creation of charts to visually represent expenses and sales trends. The use of a line graph for monthly sales and a bar chart for expenses is specified. The student has to analyze the data and make a case for the loan by demonstrating the success and profitability of the business. The assignment also explores the use of a pie chart to show investment breakup.

ICT and DATA HANDLING
STUDENT ID:
[Pick the date]

TASK 1(A)
The given business relates to sale of designer wooden chairs where the average sale price is
realized at £150. The business tends to be doing fairly well but the growth in chair sales is in low
single digits. N the long run objective is to grow the business without geographical expansion.
Owing to the potential saturation and demand from existing clientele for other products such as
furniture, I wish to enhance my range of products. For this, I need a higher working capital so
that furniture can be bought for display. This is why I intend to borrow money.
Task 2
In the spreadsheet depicting income statement, the use of sum and average formula has been
demonstrated. The sum formula has been used for the computation of total expenses along with
estimation of the annual income statement for the business which could provide an estimate of
the overall profitability of the business. With regards to the use of average formula, it has been
used to for reflecting the monthly sales and expenses. This is useful considering that sales has a
seasonal trend attached.
With regards to choice of charts, a line graph has been used to indicate the trend of monthly sales
which has been selected to that any monthly fluctuations or presence of seasonal trend can be
understood. In relation to expenses, the bar chart has been used which graphically helps in
identifying the major expenses. These are the expenses that the firm would need to keep under
control. The main expense is staff salary which constitutes a sizable proportion of the overall
expense. For the investment breakup, a pie chart has been used which tends to highlight the pie
area in accordance with the percentage contribution of each source to the overall capital.