| ||||||||||||||
 |
||||||||||||||
|
Home > A Level > Business studies > Lulu the clown entertainment business Lulu the clown entertainment businessYou can download this essay for free. All you need to do is register and submit at least one of your essays to us. Or you can purchase this essay for just $2 instantly without registering
Downloads to date:
N/A
| Words: 1433 | Submitted: 31-Mar-2011 This is what the first 3 pages of the essay look like    DescriptionLulu the clown entertainment businessPreviewLulu the clown entertainment business Lulu the clown’s entertainment business Contents Executive summary Question one A: Lulus’ expenses week ending 7th may B: Lulus’ fixed, assets, current assets, current liabilities Question Two A: Lulus’ cash account from 8th-14th may B: Purpose of the cash account Question Three A: Lulus’ profit and loss account B: purpose of profit and loss account Question four A: Lulus’ balance sheet as at 31st December 2008 B: purpose of a balance sheet TMA part two Good clear well done Executive summary A look at Lulu the clown finances from her income and expenses through to her balance sheet This gives a clear understanding of how the business is performing in its first year of trading. This will enable her and her creditors make future decisions based on these financial outcomesüü Best practice here Income and Expenses for the week ending 7 May 2008 £ Income 0 Payment annual clown festival 650 0 Expenses Travel expenses 15 Net Profit/(Loss)ü 635 Fixed Assets and Current Assets and Liabilities at 7 May 2008 £ £ Fixed assets costume and equipment 1,500 puppet dolls 200 Total Fixed Assets 1,700 Current assets 650 Less Current Liabilities puppet dolls (200) 0 Working capital at 7 May: 450 Net Assets at 7 Mayü 2,150 cash account from the 8th - 14th may £ £ Cash inflow Jessica Williamsons party 200 Patrick greens party 150 Monica smiths party 300 refund for animal feed 50 Total 700 A Cash outflows 0 train ticket 8 payment for puppet dolls 200 payment for ferrets 240 ferret food 100 travel expenses 15 costume cleaning 15 Total 578 B Net flow of cash during the period 122 A-B Opening balance in the bank 650 Closing balance in the bank 772 Ok yes good well done Purpose of the cash flow statement It is important for a business to produce a cash flow forecast, so that it can prepare for those months in which it is forecast to experience a cash flow crisis (i.e. the business needs to arrange extra credit or overdraft facilities to provide extra cash). Cash flow analysis involves examining the components of your business that affect cash flow, such as accounts receivable, inventory, accounts payable, and credit terms.Yes good this is correct By performing a cash flow analysis on these separate components, you'll be able to more easily identify cash flow problems and find ways to improve your cash flow. Alternatively, in the months where the business is forecast to be cash-rich; it can use this money profitably elsewhere within the business (e.g. new product development). Good Cash flow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, interest received etc. and then analyzing in detail the timing of expected payments relating to suppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, interest payments etc. The difference between the cash in- and out-flows within a given period indicates the net cash flow. üüWhen this net cash flow is added to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained.Yep good answer would have ... Download this essay in full now!Just upload at one of your essays to our database and instantly download your selection! Registration takes secondsOr you can download this essay for $2 immediately without registeringComments and reviewsReviews are written by members who have downloaded the essay No comments yet. If you download the essay you can review it afterwards. |
|||||||||||||
