Questions On The Management Accounts

Develop a financial plan to feasibly meet our budget constraints (KMAONE, 2013). In order to maintain an in-house

In AFC’s business plan, it stated the company is building production facilities in five major cities in U.S. and also the patent of unique ethanol production process can be collateral too. In AFC’s condition they need to get the operation started so a bridging loan (short-term) is most suitable for them until they find a permanent investor to provide the additional funds needed and it carries relatively lower risk for our bank as well.

Day J. and Krakhmal V. (2006) fourth edition (2011), An introduction to accounting and finance in business, Milton Keynes, The Open University

In this cash forecast I will analyse where the Steve’s business can improve on whether they are making a profit or not. Also I need to identify where they have regular inflow and outflows and irregular inflow and outflows. I will also comment on how the fresh business can maintain more regular numbers.

We calculated that Mr. Wilson would need an estimate of 982000 not 750000 to finance the expected expansion. As well after viewing the liquidity ratios who tend to decrease in last years, it would be risky to take such a loan.

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

The footnotes described the interest rates that wereissued and also that “All bank loans outstanding at December 15, 2005 were paid in 2006”, which can be found under Note 3 – Bank Loan and Industrial Development Bonds.

As shown in the ratios chart, working capital has increased by $13M. Maturities of short-term investments and cash flow from operations are projected to be sufficient to sustain the company’s overall financing needs, including capital expenditures. The following corporate strategic plan identifies a project that needs financial backing.

The investment requested is £12 million. Strategic and operating benefits were summarized in our previous memo to you. We have made, however, some changes to our investment analyses, which appear below.

On the other hand, the company has been growing constantly. In deed, according to the net income estimation for 2007 (see Table 7) the company increases its profits $25 thousand dollars more than the previous year. This is an evidence of how the company is been management and of its willing to grow year after year. Nevertheless, the first quarter of 2007 the working capital only has increased by $7 thousand dollars, which is the difference between the current assets and current liabilities but the importance of this is that according to the rotation on receivables and payable accounts, shown in Table 5 and 10, leads us to the conclusion that the company will have to pay its suppliers

Depending on how much additional investment needed and what will be the payback period. Another cash flow statement will be needed for further reviewing to decide whether additional funding will be a good

The profit and loss are able to reflect the financial performance of an enterprise. It is undeniable that the accrual figures are essential for firms to analyse the financial situations, however, our income statement is prepared on the cash basis and a number of assumptions are made because Fungimental is a star up enterprise and it is at the start stage. The forecast of budgeted income statement for Fungimental in 2016-2017 indicates that the company could maintain sustainable during the period and it is able to gain the positive net income of $259,105.00 at the end of April 01 2017. Nevertheless, on the basis of Fungimental (2016), a star up capital of $75,000.00 is required to ensure the process.

Ms. Ringer is largely supporting operations through her line of credit versus managing costs. In review of the operating costs, overhead and administration have increased by 8% from 2008-2011 or $116,870. In addition salary dollars continue to increase from 2008-2011 by $111,150 with no efforts to flex. The other expenses are staying steady in proportion to gross revenues. There may be opportunities in these areas however salaries and overhead is the greatest opportunity to scale back costs and contribute to increased net income and ultimately positive cash flows. Flexing salaries and benefit to 44% of gross revenue and reducing overhead and expenses to 10% of gross revenue is recommended for Ms. Ringer to increase net income to $152,956 and equity to $240,214 (exhibit Operating Statements-2012 proforma).

A bridge loan has nothing to with bridges; it is a short-term loan from a bank or other lender. For any business owner the knowledge of bridge loans may mean the difference between failure or success of a business venture. Commercial bridge loans are also known as hard money loans and they are used by business owners as a stop gap arrangement while a permanent loan is being secured. Even though home owners sometimes use bridge financing between the time they purchase or sell their homes, it is more frequently used by business people to refinance or purchase all types of commercial properties including commercial real estate. Today commercial bridge loans are being used for financing a wide range of commercial properties including hotels, factories, industrial properties, retail businesses and commercial properties having a variety of uses. Essentially a bridge loan is used for bridging the current gap between a buyer 's immediate need for cash for closing a deal and the availability of a long-term loan package for financing the deal. The terms of bridge loans are short and vary between 12 to 36 months. After that period the long-term lower cost permanent financing package, usually from the same lender, takes its place. Like other types of loans bridge loans also have their benefits and drawbacks. One of the major benefits of most bridge loans is that they are designed to close very quickly. This makes them very useful when fast cash is required to close a commercial