London School of Science: Forsyth Travel Investment Plan Analysis 2018

This report analyzes the investment plan of Forsyth Travel, a travel organization founded by Julia and Tim Forsyth. The report focuses on capital investment, its significance, and the company's financial performance, including income statements and break-even points. It details the company's plans for expansion, including employing students and securing a business loan. The analysis includes financial statements for 2017 and budgeted statements for 2018, along with occupancy rates and break-even points. The conclusion highlights the positive outcomes of the plan and the importance of utilizing net incomes for future growth. The report provides a comprehensive overview of the company's financial strategy and investment decisions, offering insights into the travel industry's challenges and opportunities.

MANAGING PEOPLE AND
SYSTEMS

Covered content
• Introduction
• Background of Forsyth Travel
• Capital investment
• Significant of capital investment
• Idea of presentation regarding investment plan for 2018
• Financial performance
• Conclusion
• Reference

Introduction
Investment plays an important role in growth of business.
Capital investment refers the investment of funds in
organisation for expansion of their business activities and
exploring new ideas. Forsyth is travel organisation which
identifies thy new opportunities to expand their business.
They want to take the advantage from current emerging
trends in holiday industry.

Introduction
Investment plays an important role in growth of business.
Capital investment refers the investment of funds in
organisation for expansion of their business activities and
exploring new ideas. Forsyth is travel organisation which
identifies thy new opportunities to expand their business.
They want to take the advantage from current emerging
trends in holiday industry.

Background of Forsyth Travel
Forsyth is an organisation which founded by Julia and Tim
Forsyth at the end of 2015 as travel company. The main
business activities of organisation is to arrange the trips to
Norway. The main motivation to start their new start-up is
coming after the effect of Brexit. Before 2015 both Tim and
Julia are working separately.

Capital investment
It is refers as the money which is invested in business by the
owner and investors with the expectation of earning income.
They have the plan that the amount which is invested in
organisation is recovered from the business activities over
several years. The different sources from where an
organisation raise funds are banks, equity investors, financial
institutions, angel investors and venture capital.

Significance of capital investment
Importance of capital investment decisions is gathered through
the analysis of expected future returns which attained by the
organisation with the help of their present investments.
• Link of investments with objectives: Such investments have
direct link with an objective of Forsyth about survival and
growth. They make major investments in fixed assets and
other services.

Idea of presentation regarding investment
plan for 2018
The owner of Forsyth, Julia and Tim makes many plans for
2018 regarding expansion of their business operations and
taking their business to the next level. Employment of travel
and tourism student and second year marketing student for
attraction of large number of tourists

Financial performance
As mentioned in the case about the company which is
selling self-catering apartment-weeks at Storartet Apart
Hotel in Floen in the west coast of Norway. It is one of the
primary reason that consists with persuaded about the
purchase of Storartet Aparthotel was a great deal but it it not
just about the apartment. But there are certain other spaces.

Statement of position for the Business Loan
Year Year Interest Total Interest Balance
1 £27,000.00 £27,000.00 £627,000.00
2 £28,215.00 £55,215.00 £655,215.00
3 £29,484.68 £84,699.67 £684,699.68
4 £30,811.49 £115,511.16 £715,511.16
5 £32,198.00 £147,709.16 £747,709.16
6 £33,646.91 £181,356.07 £781,356.07

Graphs

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