Data Handling and Using ICT: A Retail Business Case Study

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DATA HANDLING & USING ICT
Student name:
Student id:
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Contents
Introduction......................................................................................................................................3
Task 1:.............................................................................................................................................4
a. Using a maximum of 100 words, give a brief description of your business............................4
f. Total expenses..........................................................................................................................4
g. Income source..........................................................................................................................5
h. distribution of investments......................................................................................................6
Task 2:.............................................................................................................................................7
The spreadsheet design approach................................................................................................7
The chart selection approach:......................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
List of charts:
Figure 1: Monthly expenses.............................................................................................................4
Figure 2: Income source..................................................................................................................5
Figure 3: Distribution chart.............................................................................................................6
List of tables:
Table 1: Monthly expenses..............................................................................................................4
Table 2: Economic benefit table......................................................................................................5
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Introduction
The document is made for the assignment, and it includes the answers to the questions. The task
1 is the use of the spreadsheet for the give scenario of the successful retail business in West
London. The company is looking forward to expand the organization using the loan and other
things like capital and goods. The spreadsheet shows various economic factors related to it.
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Task 1:
a. Using a maximum of 100 words, give a brief description of your business.
According to the current scenario, the organization is running a profitable and successful
business of retail in the West London and now wants to expand its own business. The company
has to expand the business and to do so the company needs funding. The organization heads have
decided to collect funds from the family, friends and goods & capitals. The total collection of
funds from friends and family is £10,000.00 and an extra need of £2,500 and good worth of
£50,000.00. The organization understands that expanding the business can only happen by taking
loan. The loan will help in cover up the capital needs and in order to purchase goods and the loan
will be requested from the Local Bank of the area.
f. Total expenses
1 2 3 4 5 6 7 8 9 10 11 12
0
10000
20000
30000
40000
50000
60000
Monthly Expenditure
Monthy Expendature Total
Figure 1: Monthly expenses
The total expenses of the retail business can be obtained using the expenditure on goods and
capitals and representing their sum on monthly basis. The following table was used for the chart
shown above:
Table 1: Monthly expenses
Monthy
Expendatu
1 2 3 4 5 6 7 8 9 10 11 12
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re
For goods
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
5000
0
For capital 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500 2500
Total
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
5250
0
g. Income source
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Month 7
Month 8
Month 9
Month 10
Month 11
Month 12
$0.00
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
$70,000.00
$80,000.00
Net economic benefit
Figure 2: Income source
The source of income can be seen using the data of the economic benefit on monthly basis. The
monthly profit of the business will be calculated using the monthly economic profit. The
following table was used for the chart shown above:
Table 2: Economic benefit table
Month Month 1 Month 2 Month 3 Month 4 Month 5
Net
economic
benefit $24,000.00 $28,000.00 $40,000.00 $60,000.00 $65,000.00
Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month
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12
$68,000.00 $72,000.00 $24,000.00 $24,000.00 $24,000.00 $24,000.00
$24,000.
00
h. distribution of investments
1 2 3 4 5 6 7 8 9 10 11 12
($60,000.00)
($40,000.00)
($20,000.00)
$0.00
$20,000.00
$40,000.00
$60,000.00
$80,000.00
$100,000.00
$120,000.00
DIstribution of profits and loss
Yearly NPV Cash Flow Overall NPV Cash Flow
Figure 3: Distribution chart
The chary shown above shows the investment distribution. The success or failure of the
investment is understood by the profit or loss to the business. The above chart was made using
the following table:
Yearly NPV Cash
Flow $0.00
($22,222.
22)
($10,288.
07) $6,350.66 $6,016.36
$42,851.
53
Overall NPV Cash
Flow
$10,000.
00
($32,222.
22)
($42,510.
29)
($36,159.
63)
($30,143.
27)
$12,708.
26
$42,011.31 $12,966.45 $12,005.98 $11,116.64 $10,293.19 $9,530.73
$54,719.57 $67,686.02 $79,692.00 $90,808.64 $101,101.83 $110,632.56
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Task 2:
The spreadsheet design approach
the approach to designing the particular spreadsheet is the use of the profit and loss to the
organization as the base of the analysis. The spreadsheet presented here uses the following to
elaborate the business profit, loss and other statistics:
1. Capital amount: for capital
2. Goods amount: for goods
3. Monthly expenditure
4. Amount for goods (monthly)
5. Amount for capital (monthly)
6. Total amount
7. Total loan amount: total loan
8. Rate of interest: loan percentage
9. Total amount of loan: total amount needs to be paid
10. Net economic benefit
11. Discount Rate 8%
12. PV Of Benefits
13. NPV of all BENEFITS
14. NPV Of All Costs
15. Yearly NPV Cash Flow
16. Overall NPV Cash Flow
The chart selection approach:
The chart design was selected to show the best results. The distribution of investment was shown
using a line and bar chart as this will allow the user to know the overall graph of the company
and to understand the monthly profit and loss the bars were used. The expenditure amount and
income source were represented using the bar graphs to display the monthly distributions neatly
and precisely (Guerrero, 2014).
17.
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Conclusion
The document was created successfully and the task given were completed successfully. The
document helps to gain the knowledge of the excel and spreadsheet use and provides the insight
into how the data is analyzed and visualized in order to provide benefit to the business or any
organization.
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References
Guerrero, H., 2014. Excel data analysis. Springer.
Vayssiere, J.J.P., Saint-Paul, R.F.B. and Benatallah, B., SAP SE, 2014. Adapting a spreadsheet
for use with a complex object. U.S. Patent 8,656,271.
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