Management Accounting - Group Project You would like to start a trading business in 2021 and you plan to invest $200,000 as capital and to borrow from bank for any additional amount that is necessary for the start-up and operation of the business. Before you start, you find that it is important to do some research about the business and you need to prepare some budgets so as to see if the business is profitable and also whether there will be sufficient cash to maintain the operations. The following reports are required: Part A A Proposal to describe (a) the nature of your business, (b) the reason(s) for choosing this business, (c) the operation of your business and (d) the assumptions that you are going to make for your business (in addition to the BASIC ASSUMPTIONS set below). Part B The Final Report which includes: 1)Sales Budget for the 12 months and the yearly total of 2021. 2) Purchases Budget for the 12 months and the yearly total of 2021. 3) Selling and Administrative Budget for the 12 months and yearly total of 2021. 4) Ending Inventory Budget as at 31 December 2021. 5) Cash Budget for the 12 months and yearly total of 2021. 6) Budgeted Income Statement for Year 2021. 7) Budgeted Statement of Financial Position as at 31 December 2021. 8) A conclusion to see whether you still want to do the business after careful consideration of the budget figures. Explanations are required to support your decision made. Basic Assumptions: 1) You will start your business from scratch and your business will be located in Hong Kong. 2) Your company is selling TWO products of ANY KIND. 3) Your company will buy goods on credit and will pay 30% in the month of purchase and 70% in the month following the purchase. 4)90% of your sales will be cash sales and 10% on credit. These credit sales are mainly provided for the company customers who will settle their monthly bills in the first week of the following month. 5) Your business will have to pay 2 months' rent to the landlord as deposit when signing the rental contract and the monthly rent will be settled on the 1st day of each month. In compiling the above budgets, you have to: 1) Collect data about the selling price and cost of the products that you are going to sell; 2) Collect data about the different selling and administrative expenses necessary for your business; 3) Forecast the sales and purchases for the first year of your business; 4) Provide any other assumptions that you consider necessary. Management Accounting - Group Project You would like to start a trading business in 2021 and you plan to invest $200,000 as capital and to borrow from bank for any additional amount that is necessary for the start-up and operation of the business. Before you start, you find that it is important to do some research about the business and you need to prepare some budgets so as to see if the business is profitable and also whether there will be sufficient cash to maintain the operations. The following reports are required: Part A A Proposal to describe (a) the nature of your business, (b) the reason(s) for choosing this business, (c) the operation of your business and (d) the assumptions that you are going to make for your business (in addition to the BASIC ASSUMPTIONS set below). Part B The Final Report which includes: 1)Sales Budget for the 12 months and the yearly total of 2021. 2) Purchases Budget for the 12 months and the yearly total of 2021. 3) Selling and Administrative Budget for the 12 months and yearly total of 2021. 4) Ending Inventory Budget as at 31 December 2021. 5) Cash Budget for the 12 months and yearly total of 2021. 6) Budgeted Income Statement for Year 2021. 7) Budgeted Statement of Financial Position as at 31 December 2021. 8) A conclusion to see whether you still want to do the business after careful consideration of the budget figures. Explanations are required to support your decision made. Basic Assumptions: 1) You will start your business from scratch and your business will be located in Hong Kong. 2) Your company is selling TWO products of ANY KIND. 3) Your company will buy goods on credit and will pay 30% in the month of purchase and 70% in the month following the purchase. 4)90% of your sales will be cash sales and 10% on credit. These credit sales are mainly provided for the company customers who will settle their monthly bills in the first week of the following month. 5) Your business will have to pay 2 months' rent to the landlord as deposit when signing the rental contract and the monthly rent will be settled on the 1st day of each month. In compiling the above budgets, you have to: 1) Collect data about the selling price and cost of the products that you are going to sell; 2) Collect data about the different selling and administrative expenses necessary for your business; 3) Forecast the sales and purchases for the first year of your business; 4) Provide any other assumptions that you consider necessary. Management Accounting - Group Project You would like to start a trading business in 2021 and you plan to invest $200,000 as capital and to borrow from bank for any additional amount that is necessary for the start-up and operation of the business. Before you start, you find that it is important to do some research about the business and you need to prepare some budgets so as to see if the business is profitable and also whether there will be sufficient cash to maintain the operations. The following reports are required: Part A A Proposal to describe (a) the nature of your business, (b) the reason(s) for choosing this business, (c) the operation of your business and (d) the assumptions that you are going to make for your business (in addition to the BASIC ASSUMPTIONS set below). Part B The Final Report which includes: 1)Sales Budget for the 12 months and the yearly total of 2021. 2) Purchases Budget for the 12 months and the yearly total of 2021. 3) Selling and Administrative Budget for the 12 months and yearly total of 2021. 4) Ending Inventory Budget as at 31 December 2021. 5) Cash Budget for the 12 months and yearly total of 2021. 6) Budgeted Income Statement for Year 2021. 7) Budgeted Statement of Financial Position as at 31 December 2021. 8) A conclusion to see whether you still want to do the business after careful consideration of the budget figures. Explanations are required to support your decision made. Basic Assumptions: 1) You will start your business from scratch and your business will be located in Hong Kong. 2) Your company is selling TWO products of ANY KIND. 3) Your company will buy goods on credit and will pay 30% in the month of purchase and 70% in the month following the purchase. 4)90% of your sales will be cash sales and 10% on credit. These credit sales are mainly provided for the company customers who will settle their monthly bills in the first week of the following month. 5) Your business will have to pay 2 months' rent to the landlord as deposit when signing the rental contract and the monthly rent will be settled on the 1st day of each month. In compiling the above budgets, you have to: 1) Collect data about the selling price and cost of the products that you are going to sell; 2) Collect data about the different selling and administrative expenses necessary for your business; 3) Forecast the sales and purchases for the first year of your business; 4) Provide any other assumptions that you consider necessary.