An Overview of Computing at Business - Essay Example

Business Computing [Student’s Name] [Student’s Number] [Date] [Tutor’s Name] Student Declaration: I certify that this assignment is my own work, based on my personal study and / or research, and that I have acknowledged all material and sources used in the preparation of this assignment whether they be books, articles, reports, lecture notes, and any other kind of document, electronic or personal communication. I also certify that the assignment has not previously been submitted for assessment in any other course or at any other time in this course, unless by negotiation, and that I have not copied in part or whole or otherwise plagiarised the work of other students and / or persons. I have read the CQU policy on plagiarism and understand its implication. I can produce a hard copy of this assignment within 24 hours if requested. Executive Summary: This report is a discussion of the computing practice in business. The report outlines the basic features that a business may use for making life easier. The use of computer is now essential and it makes everything more efficient and faster. Businesses make use of programs such as MS Word and MS Excel in order to make their work better and more organised. These programs can be utilized in different ways. In this report is given an overview of computing at business. A particular business has been chosen (Harry’s super market) and computing in that case has been considered. The different scenarios that may result due to varying happenings have also been considered and it has been explained how computing can be used for making the required/desired changes and get your answers. Table of Contents 1. Introduction............................................................................................................................ 2. Discussion.............................................................................................................................. 3. Recommendations.................................................................................................................. Introduction This report would discuss the matters related to computing in business. The report would put forward the assumptions made when using computing in businesses. Other than this the report would present a discussion of the advantages of using computing in business and would also talk about the way through which it can be advantageous to it and help it. This report commences with a student declaration according to which the work being presented is my own. Following this is a brief executive summary that concisely explains the purpose and content of this whole report. It gives a very brief overview of the whole report and summarises the main points and subject matters. After this comes the real report that is of value. First there is the section of introduction, which is the current one. In this section is given a very brief overview of what the report covers and how it has been arranged. Following the introduction is the section of discussion wherein is given the various ideas and concepts related to computing in business. The section of discussion puts forward all the concerned topics and explains all the necessary projects along with presenting the way computing can be incorporated in a business and how there can be modifications in the area. The section of discussion is the most expansive one and covers all the necessary details with proper explanations. Following the discussion comes the recommendations section wherein a scenario has been recommended that would go suitably with Harry’s Supermarket and where there has been a proposal of wanting to expand the shop. Such is the complete outline of the whole report. Discussion The income statement made in the excel file submitted with this file has been made using the various available functions and formulas in the spreadsheet. There has been made plenty of use of the multiply and addition functions. This has been in the case where the percentages of sales of each product have been given and that number has been multiplied by the total sales in order to find out the actual value for each of the product. Furthermore, the use of such formulas has been made in the case where there has been a need of calculating the sales of the next year using the percentage growth given from the previous year. The subtract function has been made use of only where there was a requirement of calculating the gross profit after subtracting the total sales from the tax and expenses. The IF function has been used once and that has been done where the salary of Mr Goodstock has been shown. This has been required therein to show that Mr Goodstock withdraws his salary only in the case of there being a positive value for gross profits. The first question given in the information specifications is about the result of there being a higher sales growth rate in the years 2007, 2008 and 2009 as compared to what has been given in the statement. If there is a higher sales growth rate it is to be assumed that the sales would be more and thus the supermarket would get higher profits. However, for finding the value for this we can simply substitute the new growth value with the old one; in this case there is a requirement of substituting 7.25% with 9% in 2007, 7.75% with 9.5% in 2008 and 8.25% with 10% in 2009. The whole income statement sheet would change as the values would adjust according to the new rates. In this case in the year 2007 the current value of the net income stands at $234,302. When the sales growth rate would be 9% the net income would rise to $243,704, which registers an approximately 4% increase. Similarly, for the year 2008 and 2009 also this procedure would be carried out and it would be found that the net income of these years with the new sales growth figure would be $299,336 and $363,460 respectively. This reflects a 7.3% and 10% increase respectively. From these statistics it is to be seen that the increase has been progressive. Just like the figures have been calculated for a higher sales growth figure than the current one, figures can also be calculated for a lower figure. The result would be lower net incomes for all the years as compared to what we have currently, and this would be due to the lesser growth in sales. For comparing the sales figures of the different products a pie chart can prove to be very valuable. Following is given a chart and the values are based on the figures of the sales of the various products in the super market during the year 2006. From the pie chart a visual comparison can be made of the sales of the different products. This pie chart has been constructed using the option of “charts” in MS Word. The option is also available in MS Excel. The sales values for the different products were put together and appropriately tabulated to form the given pie chart. The next issue to be discussed is the result of decreasing Mr Goodstock’s salary and increasing that of the other employees. This change could be done just like the above changes made in the sales figure. There will be only a requirement of changing the percentage written. At the moment the value is 15% and if this is made to 8% while the other employees’ wages are raised to $14 from $12, it would require just a substitution of numbers on the income statement sheet. The result would show a rise in the net income since the total expenses would be going down. It shows that decreasing Mr Goodstock’s salary brings about such a major decrease in the expenses that even with the raise in the wages of the employees it is not offset. The new net income figure would be $231,795, which is around 19% higher than the previous one. In the case when the store would increase the number of employees by two the net income would register a decrease which can be seen by substituting 17 with 19 in the formula applied. The decrease would be of about 16%. Recommendations Since the expansion of the supermarket would require about $300,000 there has to savings from before if Harry is to carry on with the renovation at any time. This is because it has been seen that the net income from the supermarket only exceeds $300,000 in the year 2009. Harry could start renovating his supermarket after 2009. This would avoid any further trouble later on. However, if Harry wishes to carry on with renovating his shop and there are no extra funds for that he can take a loan and continue his expansion of the super market. This can be done considering that his net income has been rising over the years and it is expected that this would continue and he would be able to repay the loans with interest. Read More