Managing Financial Resources

Document Type:Business Plan

Subject Area:Management

Document 1

Additionally, there are sources of such financial resources. The sale of goods and services is one of the sources. Capital contributions through shares can provide resources the business requires. Also, an organisation may opt to acquire financial resources from external sources like bank loans and corporate bonds. Financial resources management is very significant in any organisation. 37 Net Cash flow $4,374,889 Current liabilities $111,020 Break even Revenue $1,108,970 Non current liabilities $187,324 Total liabilities $298,344 Net worth $774,526 Products description City Restaurant Bar focuses on offering customers a substantial breakfast, delicious lunch, soft drinks and take away dishes. Morning meal will comprise of eggs, omelettes, toast, tea, milk and coffee. Bacon and fruits are also part of the meal. Lunch will consist both entrees, salads and drinks too.

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Entrees include turkey hub, veggie sandwiches, chips, organic vegetable, roast chicken club, Tuna sub and smoked salmon bread. Proforma financial statements consist of past sales figures and costs for a period of two to three years. Time-series forecasting involves gathering data for a certain period and then using it to identify trends. The cause-effect method uses the past time series to consisting of different variables with the aim of determining the variable of interest. It examines relationships between variables such as interest rates and the level of consumer confidence. Statutory requirements The Corporations Law requires for proper maintenance of records for preparation of accurate financial statements and auditing purposes. Bank managers are want to see how good the business is with managing loans in the past financial years.

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The records will help the manager to access the business’s capability to pay the finances in due time. Also, the history of no bouncing cheques will increase the manager’s trust in the market. Proper maintenance of accounting records and bank statements is very crucial in any organisation. Accounting records comprise of income, equity and expenses. A natural disaster is a risk to the company as it can happen in any part of the country. As a result, it becomes difficult to know the places to put up the business. Locating a favourite site may result in high charges. Competition is also high at such places. Inadequate capital is another risk that mostly affects the business idea. The software has the ability to generate a report automatically when fed with relevant data.

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Analysis of financial statements of Berkshire Hathaway Inc. CIB Berkishire Hathaway Inc. CIB comprises financial statements which require lodgment in accordance to Australian Security and Investment Commission (ASIC). Financial lodgement refers to the process where a company pays money to a bank. 07B on free cash flow, +18. 56 cash flow per share and +13. 81 free cash flow per share. The horizontal and vertical analysis differs in several ways. Also known as the trend analysis, the horizontal analysis looks at the amounts in the income statements and expresses them in dollar form (Mesquita, & Lazzarini, 2008). 200B cash will be presented as 70( 200B divided by 700B). additionally, the analysis presents the results of the income statement as percentages of sales. For example, if the cost of goods is 400M, it can be expressed as 40(400M divided by 241.

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42B). A 600M interest on expenses can be restated as 60( 600M divided by 241. Consequently, the company has a strong foundation to market for slow-moving goods since it already has large customer networks with collaborative relationships. Conclusion In conclusion, the above discussion entails three parts. The first part introduces the hypothetical business that requires funding to start. City Restaurant Bar is the business in explanation. The second part discusses financial reporting in the City Restaurant Bar in different segments. , & Naidoo, G. Budget monitoring and control in the South African township schools: Democratic governance at risk.  Educational Management Administration & Leadership, 37(1), 107-125. Mesquita, L. F. Examining perceived honest performance reporting by public organizations: Bureaucratic politics and organizational practice.  Journal of Public Administration Research and Theory, 19(1), 81-105.

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