Qow Help Window 1 0 2 5 07 % 242 1dow H VSKM_28720032510430 SKM_28720032510430 VSKM_28720032510430 VSKM_28720032510430 VSKM_28720032510430 -4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... (4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... @ (4-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... )6a-b114-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project14-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project% / 20 49% + - 49% + 9 / 20 |- 49% + 5 / 20 | 1 - 49% + 6 / 20 49% +|9 A . dib .$ 16 for disadvantages measuretheatresurgeons which can be bur cample, a private company needs to be registered, with the Companie weather call ve more costly than establishing Proprietorship. You may need to audit or review your financial records ev for novice your financi what shares cannot be offered to the fred to the public an . Cost-volume-profit analysis -P8 7-9 innot be registered on the stock exchange. This restriction al out of the stock exchange. This restriction blely traded, a private company's marketability of its shares is also limited. 6. Working Capital Management strategy-. P8 9-11 The financial Intermediaries 1 Bank A bank is an institution that receive deposits and provides Income statement, Balance sheet and ters made use of ABSA bank when Cash flow statement for 2019 and 2020 -98 12-15 the business - by taking out a loan to start funding their business, as well as overdraft facility, just in case they require cash urgently. In spite of this, If the bank hours the cutswil impact on the service delivery to clients, For example. sun records to investments, taxes, Insurance, and so on, In 2.2 Private companies (Pty) Lid er words, a financial advisor has a major impact on the company's financial well-being 2.2.1 Advantages 0 of Four Sisters will have regular meetings with a financial advisor to ensure that the tons are being made regarding their acco dow Help 1 1 0 3 5 07 8 42 7 low Help 1 1 0 5 ( $ 4 2 Window Help B 5w Help Help VSKM_28720032510430 VSKM_28720032510430 VSKM_28720032510430 VSKM_28720032510430 VSKM_28720032510430 114-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%../14-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... (a-b114-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Pr(4-4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... 4ba4-8e2b-43bc497620ba/Group%20Comprehensive%20Project/Project%... Q 7 / 20 49% + :/ 20 49% +|9 9 / 20 | - 49% +|9 / 20 49% +|9 20 - 49% +|9 19 16 1916 - 0,4214790937 - 156.060 x 365/ 3,082,630 -120 2039 15 52 X365/ 2,800,800 even (units) /contribution margin per un Cost, Volume, Profit Ansipals * 33400/ 819.25 Total # 40.7689 Accounts Payable Days (APD)- Trade accounts payable (NOV) x 365/Cost of Sales * 41 jerseys ak even fin Rand) 2020 -1.888.525 x 365/3,088,690 - 912,832 x 365/2,800,800 take Var = 33400/40.76895 79244.73604 " R79244.74 coats the organisation was able to increase its APD by 114.21 days comp ussaso be of operating levera we went offof the of cante material total contribution marginet profit relationship with the creditor, they were able to have extend their due date to = 1.273882739 on of safety frefore, by 2020, the organisatie ised Sales and administration Budgeted soles-break even sale essional manner in which creditors for deal with, The organ Rands = 309505.254 Hors a further, in order to improve as overall CCC (the calcul for this follow be R121950 Units = 159 some/operating profit Hems or stock going ob CCC. Inventory Days + Account Receivable Days. 6. Working Capital Management (WCM) 2019 COC- 17.73 + 23.42-233.17 CCC - 15.64 - 25.55-118 96 days equal to total fired expenses. This value can be puss in manmacy's WCM holds a great deal of responsibility to the org and it impacts on overall inventory manageme wereestra over that the WCM strategy in 2020 improved percentage change in sales volumes. opted to have a conservative WCM policies. We have opted compared to 2019, as t 2020 The Margin of Safety Informs the business as to how much sales can decrease befor to sales ratio and taken on less short term debt, in order to ensure working capital is positive -23.42 62/S heydays edtra. This me and liquidity is high. Inventory and debtors As cat tomeet andrew 's Incurred. Therefore the Margin of Safety is the excess of actual sales after the exper break even sales value. misation can invest this money for about 126 days, earning intere In 2020, the organisation was able to reduce the debtor's collection period by 2.13 days, ganisation's overall profit. This Improvement in CCC was mostly due to being tory on Hand (DION)- Inventory (EOV] x 365/Cost of Sales accounts receivables were more anaged. This is turn has editors more, due to the trusting and personal relationship the org helped to reduce the organisations bad debt expense, Improving the cash flows and overallHow to deal with the sections on Accounting: Since you are setting up the business you cannot be expected to produce a General Ledger, Trial balance, ar Financial statements as these record transactions which have occurred in the past. The lectures and tutorials on "bookkeeping" were intended to introduce how records of financial transaction are kept AND to provide you with the necessary background for you to BETTER understand the Statement Comprehensive Income (Income Statement) and Statement of Financial Position (Balance Sheet). They were NO intended to turn you into expert accountants overnight! " A section planning how you are going to maintain the accounts of the business could be included in your project. More than that is not necessary. (Hint: Maintain and update your Accounting records regularly)20.1 Project topic You are required to compile the financial section of a business plan for an entrepreneurial business project, in other words: document all the PLANNING, CALCULATIONS, AND RESEARCH OF A FINANCIAL NATURE, if you were to investigate embarking on a new business enterprise. The nature and operations of this organisation are left to your imagination but you should ensure that it provides you with enough scope to apply the various tools you have become familiar with during the course. Record the steps and techniques you would use to start the business. The information you use and any assumptions made must be reasonable. Your final submission should include, among other things, the following: 1. A description of the business, its activities, and its potential clients (market) 2. A description of the form of business (Close Corporation, Private Company, Partnership, etc.) you have chosen for your organisation and the reasons (highlighting the advantages and disadvantages) for your decision. 3. Details of the financial intermediaries (banks etc) likely to impact your business and the nature of this interaction 4. Discuss and evaluate the Sources of Finance available to the form of ownership you have chosen (advantages and disadvantages) and calculate the firm's Cost of Capital. 5. Discuss and plan a Working Capital Management strategy for your business. (Not a textbook discussion. A textbook discussion will be penalised). 6. Perform a Cost, Volume, and Profit (CVP) analysis for the business. Determine the break-even point (in units and rands), earnings at the expected level of sales, the margin of safety, and the degree of leverage. 7. A projected Income Statement, Statement of Financial Position (Balance sheet), and Cash Budget (or Cash Flow Statement) for two years (that is 2022 and 2023). How to deal with the sections on Accounting: Since you are setting up the business you cannot be expected to produce a General Ledger, Trial balance, and Financial statements as these record transactions which have occurred in the past. The lectures and tutorials on "bookkeeping" were intended to introduce how records of financial transactions are kept AND to provide you with the necessary background for you to BETTER understand the Statement of Comprehensive Income (Income Statement) and Statement of Financial Position (Balance Sheet). They were NOT intended to turn you into expert accountants overnight! A section planning how you are going to maintain the accounts of the business could be included in your project. More than that is not necessary.Hello try this and work with annual figures: 1. Apply double entry at all times, if this balances you are well on your way to preparing the Projected Statement of Comprehensive Income and Statement of Financial Position. 2. This is just a suggestion as different business will have different accounts. 3. Of course you have to decide what are your Fixed costs and Variable costs. 4. Please do not forget the Net profit after tax is added to the Retained earnings. Statement of Financial Position Statement of Comprehensive Income Share Capital Sales Income ... Retained Earnings Cost of sales expense Loans punter income Equipment Salaries and wages expense Furniture . ..... ....... Inventory tent expense ..4... .4... Inventory (Finished goods) Telephone expense Debtors Water & electricity expense Bank .....Trial balance as at Cr Share capital Retained earnings Loans Equipment Furniture Inventory: Raw materials Inventory: Finished goods Debtors Bank Sales income Costs of sales expense Other income Salaries and wages expense Rent expense Telephone Water and electricity expense From here you can prepare the Statements of Comprehensive Income and Financial Position