-
+1 - 312-224-1615
Get in touch with us
-
support@helpwithassignment.com
Send us an e-mail
Solution Library
Business Report of Fashion Clothing and Financial Statements
Question
A group of friends have formed a new business called Fashion Clothing, an online and mailorder clothing business, in which they have invested £200,000 of their own capital. They intend to manufacture and sell quality clothes. They have set up the business and are selling direct to the final consumer, using a combination of aggressive marketing across a range of different media and also with the use of an automated Web site that accepts online orders. To support this, they also have a department of telephone sales and support staff ready to help customers. The sales staff work in teams and receive a basic salary plus commission for each successful sale. By the start of July 20X5, they have spent £150,000 on tangible noncurrent assets, and they currently have the remaining £50,000 in their business bank account.
They provide you with the following forecasted figures for their first 6 months of trading:
|
|
£
|
|
Sales for the next 6 months |
1,350,000
|
|
Cost of the materials used up in sales |
390,000
|
|
Labour costs for the 6 months |
480,000
|
|
Other expenses for the 6 months, including marketing costs and £15,000 depreciation of tangible noncurrent assets
|
345,000
|
|
Materials purchased during the 6 months |
520,000
|
Their projected cash receipts and payments are estimated to be as follows:
|
Month (20X5) |
Sales Receipts |
Payments for Materials |
Labour and Other Expenses |
|
|
£ |
£ |
£ |
|
July |
150,000 |
120,000 |
These payments are divided equally over each of the 6 months |
|
August |
120,000 |
100,000 |
|
|
September |
150,000 |
60,000 |
|
|
October |
210,000 |
60,000 |
|
|
November |
260,000 |
60,000 |
|
|
December |
285,000 |
60,000 |
|
|
Totals |
1,175,000 |
460,000 |
|
In addition to the above, they expect to have to pay a tax bill of £20,000 in December 20X5 and also plan to buy (and pay for) £30,000 additional tangible noncurrent assets in that same month. All transactions will go through their business bank account.
Prepare a Business Report for the friends who have invested in Fashion Clothing, commenting on the business’ prospects and including the following five financial statements.
Summary
This question belongs to finance and discusses about preparing a business report for friends who invested in Fashion clothing.
Word count: 1339
Download Full Solution
WHAT OUR STUDENTS SAY
I was unable to find any sort of solution to my case study related to the hip and femur fracture patient. However, I was surprised to see that in HwA they have a separate group of nursing experts for the musculo-skeletal assignments and homeworks. It was really helpful and till now I keep in touch with HwA for all my nursing solutions.
Chris Bunting Student
Corporate Finance can be a difficult topic if you do not get the proper guidance with your assignments. With TheReliableTutor I never have to worry about not understanding the corporate finance assignment material as the writing is always very lucid and absolutely comprehensible to all"
Julia Reynolds Student
The reference material and notes provided by the online electrical engineering tutor assigned to me by HwA was exactly what I was looking for. Keeping up with the course load is difficult enough without having to run from pillar to post searching for research material. The online electrical engineering tutor at HwA made my work much easier by providing me high quality reference material which met the specifications given by my professor.
Morgan Walters Student
My professor was very strict about plagiarism in all our finance assignment essays. So when I decided to take the help of an online service for help with my finance assignments this was the first concern I had. But with the finance assignment writing experts at TheReliableTutor I have not once had a problem with plagiarism or gotten into any problem with the professor.
Paul Samson Student
I needed help with writing my Stats Dissertation and my advisor was not available all the time due to her busy schedule. At first i was pretty apprehensive about using an online service for help with my dissertation writing. I had major doubts about the quality would not be up to dissertation level. But i was proved very wrong by the standard of online stats tutoring I received at HwA. I was paired with an online stats tutor who had a PhD in the subject and from there on the journey was as smooth as it can get.
David Strawderman Student
Comments
this is a very good website
I have 50 questions for the same test your page is showing only 28
hi can you please help or guide me to answer my assignments. thanks
hi can anyone help or guide me to my assignments. thanks
This solution is perfect ...thanks
Hello Allison,I love the 2nd image that you did! I also, had never heard of SumoPaint, is something that I will have to exolpre a bit! I understand completely the 52 (or so) youtube videos that you probably watched. Sometimes they have what you want, sometimes they don't! However, it is always satisfying when you are able to produce something that you have taught yourself. Great job!Debra 0 likes
Perfect bank of solution.
great !
thanks for the quick response. the solution looks good. :)
thnx for the answer. it was perfect. just the way i wanted it.
works fine.