Scenario: You are planning to set up your own small business, but you only have 100,000 in cash to use as start-up capital. You will need to prepare a business plan in order to raise the additional finance that will be required to meet your budgeted operations. You may assume that you can borrow what you need from your bank at a given rate of interest. Part of your business plan involves drawing up the following 12-monthly budgets to underpin your proposed business activity & to persuade your bank manager to lend you the required funds. Key points (marks will be deducted if these points are not followed): a) Your business must make one product only b) You must manufacture this product (this means you can't provide a service) c) You must have closing stock of finished product which should be valued correctly. d) Your product must require at least 2 materials to make and you need closing stock of these materials. e) You must employ people to make the product (labour) f) You must borrow some money from the bank. Required: 1. Table of Assumptions made; basis: Management Accounting principles 2. Sales Budget 3. Production Budget 4. Labour Budget 5. Purchases Budget N.B.:- All assumptions made in estimating your figures must be reasonable and clearly stated in a table in your introduction to this assignment. It is imperative that all budgets have a total column for the 12-month period. Your business plan must be word processed (show word count, max 500 ex.) You must use spreadsheet(s) in Appendices with formulae correctly applied for Scenario: You are planning to set up your own small business, but you only have 100,000 in cash to use as start-up capital. You will need to prepare a business plan in order to raise the additional finance that will be required to meet your budgeted operations. You may assume that you can borrow what you need from your bank at a given rate of interest. Part of your business plan involves drawing up the following 12-monthly budgets to underpin your proposed business activity & to persuade your bank manager to lend you the required funds. Key points (marks will be deducted if these points are not followed): a) Your business must make one product only b) You must manufacture this product (this means you can't provide a service) c) You must have closing stock of finished product which should be valued correctly. d) Your product must require at least 2 materials to make and you need closing stock of these materials. e) You must employ people to make the product (labour) f) You must borrow some money from the bank. Required: 1. Table of Assumptions made; basis: Management Accounting principles 2. Sales Budget 3. Production Budget 4. Labour Budget 5. Purchases Budget N.B.:- All assumptions made in estimating your figures must be reasonable and clearly stated in a table in your introduction to this assignment. It is imperative that all budgets have a total column for the 12-month period. Your business plan must be word processed (show word count, max 500 ex.) You must use spreadsheet(s) in Appendices with formulae correctly applied for
