Retail Business Expansion: Financial Analysis and Investment Strategy

This report provides a detailed analysis of a successful retail business's expansion plan, focusing on its financial aspects and investment strategy. The report begins with a brief description of the current state of the retail business in West London, highlighting its profitability and the decision to expand. A spreadsheet is presented, detailing the business's financial performance over a year, including total revenue, cost of sales, gross profit, expenses, and profit before and after tax. The spreadsheet includes calculations of averages and percentages. The report further includes visual representations of expenses, sources of income, and the distribution of investment. Task 2 discusses the importance of spreadsheets as an essential accounting and business tool, highlighting the use of formulas to organize and analyze data. The report concludes with references to relevant academic sources.

REPORT

TABLE OF CONTENTS
(a) Brief description....................................................................................................................1
(b) Creating spreadsheet..............................................................................................................1
(f) Clear presentation expenses...................................................................................................2
(g) Sources of Income.................................................................................................................3
(h) Distribution of investment.....................................................................................................3
TASK 2............................................................................................................................................3
REFERENCES................................................................................................................................5

(a) Brief description
At the current state, successful retail business has been operated in West London. The major operation of business are related
to clothing which comprises of every segment. Over past years, company has never made losses as its profit margin has been
increased in every month. While observing this, it has been decided to expand business for attaining best brand image and for attaining
success. Henceforth, in this aspect there is requirement of extra £2,500 of capital along with £50000 of goods so for this purpose loan
would be required.
(b) Creating spreadsheet
Retail
business
JAN FEB MAR APR MAY JUN JULY AUG SEP OCT NOV DEC
TOTA
L
AVERAG
E
PERCENTAG
E %
Total
Revenue 4500 4725 4961 5209 5470 5743 6030 6332 6649 6981 7330 7697 71627 5969
Exclude:
Cost of
sales 1900 1938 1977 2016 2057 2098 2140 2183 2226 2271 2316 2362 25483 2124
GROSS
PROFIT 2600 2787 2984 3193 3413 3646 3891 4149 4422 4710 5014 5334 46144 3845 124.46%
Expenses
Salaries 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 0 0 10000 833 54.15%
Utilities 155 158 161 164 168 171 175 178 182 185 189 193 2079 173 11.26%
Insurance 123 125 127 129 131 133 135 137 139 141 143 145 1608 134 8.71%
1

Rent and
Rates 170 173 176 179 182 185 188 191 194 197 200 203 2238 187 12.12%
Marketing 190 194 198 202 206 210 214 218 222 226 230 234 2544 212 13.77%
Total
expense
s 1638 1650 1662 1674 1687 1699 1712 1724 1737 1749 762 775 18469 1539
Profit
before tax
(5%) 962 1137 1322 1519 1726 1946 2179 2425 2686 2961 4252 4559 27675 2306 106.38%
Taxes 58 68 79 91 104 117 131 146 161 178 255 274 1661 138
PROFIT
AFTER
TAX 904 1069 1243 1427 1623 1830 2048 2280 2525 2783 3997 4286 26015 2168 100.00%
Profit %
20.10
%
22.62
%
25.05
%
27.40
%
29.67
%
31.86
%
33.97
%
36.01
%
37.97
%
39.87
%
54.53
%
55.69
%
2

3

4

(f) Clear presentation expenses
5

(g) Sources of Income
6

(h) Distribution of investment
TASK 2
In the above scenario, spreadsheet has been used which is very essential accounting and business tool. It could vary in
complexity and could be implicated for different reasons but its initial objective is to categorise and organise data into logical format
(Olkin, 2019). In this aspect, if data is entered into spreadsheet, it could help to organize and growth with business perspective. The
formula is considered as expression telling computer with mathematical operation and performed as per particular value. This
interlinks cell with application of formula so that formula cell alters when data is imputed its associated skills. The best mode is to
store information in spreadsheet via formulas. Thus, formulas could be copied and pasted to other cell and even to different
worksheets as well (Far and Huang, 2019). So, in this context, users are not required to recreate formula if there is need to perform
similar operation to numerous sets of data.
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REFERENCES
Books and Journals
Far, M. S. and Huang, H., 2019. Simplified algorithm for reliability sensitivity analysis of structures: A spreadsheet
implementation. PloS one. 14(3). p.e0213199.
Olkin, T. M., Workday, Inc., 2019. Data flow view for a spreadsheet. U.S. Patent Application 15/133,078.
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