Start up your own business venture, making and marketing a single product using at least two types of both materials & labour; however as you only have 100,000 in cash personally to use towards this, you will need to prepare a summary business plan and supporting budgets in order to raise the additional finance required to meet your budgeted operations. You may assume that you can apply for the funds needed from a bank at their prevailing market interest rate.
A major task involves drawing up the following budgets for one year to resource your proposed activities and to persuade potential lenders to contribute finance to your business venture:
1.Table of Assumptions
Any and all assumptions made in estimating figures must be researched, referenced, reasonable & clearly stated in this table
2.Budgeted Contribution Statement, Total contribution & C/S ratio
3.Capital Expenditure (Fixed Assets) Budget
4.Sales Budget
5.Production Budget
6.Purchases and Inventory Budgets
7.Direct Labour Budget
8.Overheads Budget
9.Cash Budget
** It is Imperative that budgets 4. – 9. include a total column for the 12-months **
10.Budgeted (Annual) Income Statement
11.Budgeted (Annual) Balance Sheet
12.Calculations showing the Break-Even Point in units, of sales & percentage
13.Calculations showing the Margin of Safety in units, of sales & percentage
You must use spreadsheets in Appendices with formulae correctly applied for each of the budgets 1. – 13. above
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