Business Report: Investment Analysis for Mark and Paul

This business report provides an in-depth analysis of Mark and Paul's business operations, focusing on sales, labor, and cash budgets. The report details the sales budget with unit sales and pricing, the labor budget including planned production and costs, and the cash budget, outlining cash inflows and outflows. It analyzes investment opportunities using Net Present Value (NPV) and Average Rate of Return (ARR) calculations to assess project viability. The report identifies associated issues like lack of transparency and time-consuming processes, and concludes with a comparison of investment opportunities, emphasizing the importance of product quality and customer satisfaction. The report also includes a detailed executive summary and references to relevant literature.

BUSINESS REPORT

Executive summary
From the above report, it has been seen that there are different types of budget can be
developed in systematic way. It is the best opportunity to Mark and Paul to identify their product
selling in business unit. In this way, their cost also identified which exist in order to make their
products and services. From the above, cash, sales and labour budget has been implemented at
workplace to develop their operations and functions.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 2 ...........................................................................................................................................1
2.0 Nature and scope of investment............................................................................................1
TASK 3............................................................................................................................................1
3.1 Sales budget..........................................................................................................................1
3.2 Labour budget.......................................................................................................................2
3.3 Cash budget...........................................................................................................................3
3.4 Overview and analysis .........................................................................................................4
3.5 Issues associated with investment.........................................................................................4
TASK 4............................................................................................................................................5
4.0 Investment opportunity with ratio analysis...........................................................................5
TASK 5............................................................................................................................................6
5.0 Comparison of investment opportunities..............................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Business report is the important aspect which reveals the specific information about the
enterprise. It helps to attract investors in enterprise to enhance business operations and functions
in systematic way. In this context, present report is based on Mark and Paul which have
enhanced their performances to produce effective results (Cohn, Fehr and Maréchal, 2014). For
gaining insight knowledge of company, report covers purpose, scope, etc. Furthermore, it
includes different types of budget to analysis business performances in systematic way.
However, there are many issues that have been identified in order to select the present
investment opportunity. This is because, there is no alternative option available with company to
do functions and operations in the proper way at workplace.
TASK 2
2.0 Nature and scope of investment
In order to create effective results, investment decision plays important role in Mark and
Paul. The following are the characteristic and scope of the business unit:
 To understand different types of rules in investment decisions.
 To know about the good and bad investment decisions within the Mark and Paul.
 To understand the category of investment decisions rules in business unit.
 The organisation need to follow the entire process of the investment which start with the
contribution of the fund and ends with the getting the fund for investment. (Bernstein,
2015).
 Decisions can also be made to ensure that required expectations develop in term of return
the cost.
Limitations in the investment
Following are such limitations of investment in the Mark and Paul project:
Lack of transparency: In the organisation there is lack of transparency among
employees and their managers. Therefore, it creates big issue to develop functions and operations
in investment project of Mark and Paul.
Lack of truth: Sometimes, professional not possess effective results because of lack of
truth. Therefore, it turns to worse performances which come up with excuses. This is the terrible
way to run successful business operations.
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Time consuming: In order to select investment opportunity, it consumes more time.
Therefore, it is the big issue to determines effective operations and outcomes within the Mark
and Paul.
TASK 3
3.1 Sales budget
Sales budget
Month June July August September
Sales unit 20000 18000 18000 22000
Price per unit 45 45 45 45
Sales price of
mean
900000 810000 810000 990000
Sales unit of
drinks
60000 54000 54000 990000
Price per unit 6 6 6 6
Total sales price
of drinks
360000 324000 324000 5940000
Total sales price
of drinks
1260000 1134000 1134000 6930000
From the above sales budget, it can be stated that company has opportunity to determine
sales per unit in significant way. There are total 20000, 18000, 18000 and 22000 units in month
of June, July, August and September, respectively. Price per unit of the product is same for all
month that is 45. The mean data is calculated, that is 900000, 810000, 810000 and 990000
respectively. Selling of drinks determines as the 60000, 54000, 54000 and 990000 respectively.
In this aspect, price of the product is 6 per unit. Therefore, total sales from this is 360000,
324000, 324000, 5940000. At last it has been seen that total sales price of the drinks in month of
June, July, August and September, were 1260000, 1134000, 1134000 and 6930000, respectively.
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3.2 Labour budget
Labour budget
Month June July August September
Planned budget 80000 72000 72000 1012000
Working hours 6 6 6 6
Cost 23 23 23 23
Number of
employees
3 3 3 3
Working days 26 26 26 26
Overall cost 10764 10764 10764 10764
In the present labour budget, it has been seen that planned production is categories in
term of 80000, 72000, 72000 and 1012000 in month of June, July, August and September,
respectively. Total working hours in these months are 6 in each month. Therefore, it has been
seen that cost in each month that is 23. Further, the number of employees working in a day is 3
and they work almost 23 days in each month. Overall costs in the business is 10764 in each
month of June, July, August and September.
3.3 Cash budget
Cash budget of Mark and Paul
Months June July August September
Bank account 80000
Cash
revenues
Sales revenues 1260000 1134000 1134000 6930000
Total cash
inflow
1260000 1134000 1134000 6930000
Expenditure
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Machinery 0 110000 0 0 10764
Furniture 0 30000 0 0
Vehicle 0 43000 0 0
Utensil 0 18000 0 0
Credit produce 0 0 40000 0
Credit drinks 0 2000 9000 9000
Labour
expenses
0 10764 0 0
Owner
drawing
0 10000 10000 10000
Overhead cost 5000 5000 5000 5000
Total
expenditure
5000 228764 64000 24000
Net cash
balance
1255000 905236 1070000 6906000
3.4 Overview and analysis
In the present cash budget, it has been analysis that in month of July, the company has
80000 cash balance in a bank. There are different types of methods through cash revenue can be
generated. In the sales revenue 1260000, 1134000, 1134000 and 6930000 earns in month of
June, July, August and September. Total cash inflows occurs in these months are 1260000,
1134000, 1134000 and 693000, respectively. There are various elements due to which company
has occurred cost to purchasing the assets such as machinery, furniture, vehicle, utensils, credit
produce, credit drinks, labour expenses. Owner drawing and overhead cost. Therefore, total
expectations occurs on these items are 5000, 228764, 64000 and 24000 in month of June, July,
August and September respectively. At last, net cash balance occurs 1255000, 905236, 1070000
and 69606000 in these months.
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3.5 Issues associated with investment
There are several issues take place which face by the business to cater their investment in
significant manner (Visser, 2017). Within the Mark and Paul, these issues create big impact to
make solution in effective aspect. These issues are explaining under here:
Be effective cost: It is the old issue which take place in the today's world which create
the main impact to the business operations of Mark and Paul. In order to make investment, they
have to ensure that their cost of the products required effective so that goals and objectives will
be develop in systematic way (Gleick, 2014). Companies are having to look at their business
process. In covering sales and marketing with fund management and operations. Many of the
firms looking very deep to see in the different cast.
Offer sophisticated products: The range of asset classes are also offers to the individual
with the help of independent financial advisor or wealth managers. In order to offers to the
institutions, it is continuously growing day by day (Page, 2014). The pressure also launches in
new and more sophisticated aspect within the Mark and Paul. It provides good opportunities
which needed at workplace for their developing outcomes.
Provide better client services: Better word means correct information need to be
provide in greater aspect towards client services (Carroll and Buchholtz, 2014). Therefore,
solutions are typically involving to provide more invaluable and knowledgeable staff in the Mark
and Paul. Client are more demanding in term of taking return in business. Therefore, fund
manager also need to arrange their products and services through they are able to fulfil customer
demand.
Meet with regulatory obligations:
TASK 4
4.0 Investment opportunity with ratio analysis
NPV:
Project A Pv @ 12% Present value
Initial
investment 390000
1 100000 0.893 89286
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2 230000 0.797 183355
3 190000 0.712 135238
4 140000 0.636 88973
5 0 0.567 0
6 0 0.507 0
Total 496851
NPV 106851
27.40%
From the above NPV, it can be said that it is the not suitable project for the chosen
enterprise. This is because, Mark and Paul has high investment in order to enhance their revenue
and profits. However, at last they are getting only 27.40% in return. Therefore, it helps to
accomplish effective results and outcomes through developing different resources at workplace.
Initial investment of the project A is 390000 so and net present value at end of the project is
106851. Hence, company has not suitable option to make their investment in the market.
ARR
Project A
Initial
investment 390000
1 100000
2 230000
3 190000
4 140000
5 0
6 0
Total 660000
Average 165000
ARR 42.31
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It is another important tool which is used by the Mark and Paul that they are effective
operation results. In this way, the organisation can enhance their profitability in the workplace
which assists to develop operations in significant manner (Kitching, Hart and Wilson, 2015).
They are getting effective results of their efforts because they are having much high results in
respect to Average rate of return in their business operations and functions.
TASK 5
5.0 Comparison of investment opportunities
There are several investment opportunities to the chosen business. From the above
calculation, it can be stated that it is the good opportunity in front of Mark and Paul. In order to
take Average rate of return, company getting high customer value of their products and services.
(Cosgrove and Rijsberman, 2014). However, purchasing of the product is the best option to the
chosen organisation so that they will able to cater relevant and effective results in the business
products and services. In this way, they are also made sure that products have good quality which
serve satisfaction to the customer
CONCLUSION
From the above report, it can be concluded that there are several issues which is faced by
the Mark and Paul in the different operations. The report summarized about the sales budget
through the chosen business which can assess the implementation of best prices of their products.
Furthermore, labour and cash budget are also calculated that is being implemented by the
organisation by which profit and loss can be calculated.
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REFERENCES
Books and Journals
Bernstein, M.H., 2015. Regulating business by independent commission. Princeton University
Press.
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder
management. Nelson Education.
Cohn, A., Fehr, E. and Maréchal, M.A., 2014. Business culture and dishonesty in the banking
industry. Nature. 516(7529). pp.86-89.
Cosgrove, W.J. and Rijsberman, F.R., 2014. World water vision: making water everybody's
business. Routledge.
Gleick, P.H. ed., 2014. The world's water volume 8: The biennial report on freshwater resources
(Vol. 8). Island Press.
Kitching, J., Hart, M. and Wilson, N., 2015. Burden or benefit? Regulation as a dynamic
influence on small business performance. International Small Business Journal. 33(2).
pp.130-147.
Page, M., 2014. Business models as a basis for regulation of financial reporting. Journal of
Management & Governance. 18(3). pp.683-695.
Visser, W., 2017. Sustainable frontiers: Unlocking change through business, leadership and
innovation. Routledge.
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