Data Handling and ICT: Tea Parlor Business Plan and Income Statement

This assignment presents a business plan for a tea parlor aiming to expand its operations. The plan includes a description of the business, its goals, and the rationale for seeking debt funding of £15,000. The core of the assignment is an Excel spreadsheet detailing sales and expenses over a period, demonstrating the business's profitability. The student utilizes various Excel functions, such as SUM and AVERAGE, to create an income statement and analyze monthly fluctuations. Furthermore, the assignment incorporates data visualization techniques, including trend lines, bar charts, and pie charts, to represent expenses, sales trends, and sources of finance, respectively. The student demonstrates the ability to use ICT tools for financial analysis and presentation, supporting a loan request with clear financial data and projections, along with charts to illustrate the business's financial performance and investment distribution.

Data Handling and Using ICT
STUDENT ID:
[Pick the date]

TASK 1(A)
The concerned business is a tea parlor where various tea varieties are sold with an estimated
realization of £5 per cup. The business has seen steady growth with a loyal clientele and
increasing demand for more exotic blends. As a result, I want to focus on developing new blends
and also increase the seating space so as to cater to the increase in the customers. Also, I wish to
launch some home made gourmet snacks especially suited to be served with premium teas. In
order to make this shift, debt funding to the tune of £15,000 is required which would be paid
over a four year period.
Task 2
The income statement has been computed with the aid of relevant excel functions such as sum
and average. Considering that there are a host of operating expenses which are carried out, hence
there is a need to add these to represent the total expenses. Further, owing to the tea sales being
linked to the season, hence both the sales and salary costs are driven by the underlying season. In
this regards, it makes sense to present a monthly view considering the average revenues and
expenses which has been facilitated using average function.
Considering that sales tend to fluctuate on a monthly basis, hence it makes sense to summarise
this using a trend line which not only indicates the precise values of sales but also marks the
trend which is useful to analyse the business. A bar chart has been constructed to denote the
annual expenses where the length of the bar represents the size of the expense. Even without
studying the graph, through a glance pivotal expenses can be identified. Further, pie chart has
been used to indicate the sources of finance whereby percentage contribution is shown.