The paper "Small Business Planning" is an outstanding example of a business assignment. There are various options that the business can use to utilize the above non-current assets. For instance, vehicles can be used to transport soft drinks from the stores to retail shops and also to transport staff from one location to another (Cockburn 2012). The advantage of this is that the business will be able to rely on its own transport during the delivery of the drinks to its customers. The disadvantage of this function is that the business will incur costs such as the cost of fuel and repair and maintenance costs. Warehouses can be used by the business to stock soft drinks so that they can be distributed to customers whenever they are needed (Hall 2004).
The advantage of this is that it ensures the business keeps the stock safe from intruders, thus preventing losses. The disadvantage is that there is a high cost of warehouse renting which affects the profitability of the business. Assessment Activity 9 1. Explain the difference between the cash flow statement and cash flow projection A cash flow statement is a summary of expected cash to be received and spent in a particular period.
On the other hand, cash flow projection refers to statements showing the expected cash receipts and expenditures in the future (Kirwan 2009). 2. Complete this cash flow reconciliation: Month 1 Month 2 Month 3 Month 4 Month 5 Opening balance $10000 $35000 $40000 $15000 $(10000) Cash revenues $40000 $25000 $25000 $20000 $55000 Cash payments $15000 $20000 $50000 $45000 $20000 Closing balance $35000 $40000 $15000 $(10000) $25000 What is the closing cash balance at the end of the fifth month? $25000 In the fourth month where there will be a shortfall of $10000 3. Choose a business idea in which you are interested. Prepare a six-month cash projection based on your best guess of likely cash inflows and outflows.
Create a detailed table that specifies the anticipated cash receipts and payments. Provide details of the projected monthly cash balance. The business whose cash flow projection is shown below is a newspaper distribution outlet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Opening balance $7000 $12000 $16000 $13000 $14000 $18000 Cash revenues $15000 $9000 $4000 $7000 $15000 $12000 Cash payments $10000 $5000 $7000 $6000 $11000 $15000 Closing balance $12000 $16000 $13000 $14000 $18000 $15000
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retirement. Petersfield, Hampshire: Harriman House Ltd.
Hall, R. E. 2004. Strategic planning for a small business: Everything you need, including:
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Kirwan, J. 2009. Good small business planning guide: How to make a successful business
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May, G. L., & Business Expert Press. 2010. Strategic planning: Fundamentals for small
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