New businesses are most likely small start-ups and grow gradually. New businesses and business expansion need finance. There are many sources to raise finance/funds, some are internal and others are external, some sources are expensive and some are not. Different kinds of businesses like sole traders, partnerships, and companies have different options to raise finance/funds. You are required to choose your own choice of sole traders, partnerships, and companies, belonging to different sectors, and prepare a report of available sources and availability of finance for such businesses.
Bells and Bake started recently on 1st Jan 2022, as a single-item shawarma shop, they are planning to prepare a cash flow forecast for a year on the following data.
a). Business started bank loan only and invested £ 30,000.
b). Loan repayments are 200 principal and 10% interest on 200 each month, the first payment is due on 5th Feb 2022.
c). Expected sales January sales are £5,000 and 10% in each month as the previous month, 70% on cash, and 30% on credit, credit customers are expected to pay for the next month of sales month.
d). Inventory will cost 60% of sales of the same month.
e). Shop rent is fixed at £1000, which will be paid in advance at the start of each month.
f). Staff salaries are £3500 each month, which will be paid next to the due month.
g). Utility bills are £110 for each month, which will be paid after each quarter. The first payment will be paid on 5th April. 2022 for the first quarter.
h). Insurance will be paid in advance, for 6 months, £ 100 for each month.
i). Advertising expense is £ 200 each month.
j). Repairs of PPE are expected £300 at the end of the third month like the first repair will be at the end of March.
k). Miscellaneous payments are expected £100 each month.
Buy Answer of This Assessment & Raise Your Grades
Cooper Hogg Traders is a sole trader business operating in Pool, on the high street since 2000. They buy stock from local suppliers and sell it to local customers. Here is their trial balance for the year ended 31 December 2022 has been provided