StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Business memorandum - Assignment Example

Cite this document
Summary
This document aims to highlight the significance of the various budget statements with the scope of making it much easier to provide structure for giving a company a sense of guidance towards a given direction and also predict cash flows for both short and long-term estimations…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
Business memorandum
Read Text Preview

Extract of sample "Business memorandum"

Business Memorandum. Task: Business Memorandum. Scope and Objective of the budget. This document aims to highlight the significance of the various budget statements with the scope of making it much easier to provide structure for giving a company a sense of guidance towards a given direction and also predict cash flows for both short and long-term estimations thereby curbing periodic cash-related crunches. Moreover, it creates a platform that facilitates the modelling of various financial scenarios for companies and also may act as a measure of performance.

Significance of sensitivity analysis and the subsequent interpretation of the results. Among the most important elements of financial analysis, sensitivity gives insight on a variety of concerns that ultimately assist in the growth of an entity (Blais 2011, p. 99). Therefore, Case 1 tries to evaluate the results of lowering credit sales from 75% of total sales to 60% with 20% of next months projected cost of goods sold being inventory at the end of each preceding month. Moreover cash payments during the same month are put at a modest 20% of total purchases.

Consequently, these changes amount to various adjustments; the cash receipts budget records a positive inflation to $2,769,808 from $2,734,060. Moreover, summary cash budget also records a significant rise to $738,578 from $51,908. Case 2 evaluates the effect of a rise in credit sales collected during the month of sale from 10% to 15%, and also the effect of raising a month’s payment purchases from 40% to 50% within the month of purchase. This then results in an increase of the cash receipts budget from $2,734,060 till $2,769,808 while showing a drop in the cash budget to $46,102 from $51,908.

The final case, Case 3, tries to simulate the possible result of a drop in requirements of equipment purchases from $250,000 down to $100,000. This alteration affects only the summary cash budget which inflates to the $205,658 mark.Recommendation. The first thing that the management should think of is ways of decreasing cost so as to maximize on profits and overall revenue. This can be attained through plummeting credit sales and also minimizing expenditure on the purchase of equipment. By doing this, the overall operating costs will reducing meaning that there will be more capital to be invested back into the business consequently leading to increased growth (Blais 2011, p. 312).References.Blais, S. (2011).

Business Analysis: Best Practices for Success. New Jersey, NJ: John Wiley & Sons.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Business memorandum Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Business memorandum Assignment Example | Topics and Well Written Essays - 250 words. Retrieved from https://studentshare.org/business/1694752-business-memorandum
(Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words)
Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words. https://studentshare.org/business/1694752-business-memorandum.
“Business Memorandum Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/business/1694752-business-memorandum.
  • Cited: 0 times

CHECK THESE SAMPLES OF Business memorandum

Accounting Issue Using Accounting Standards Codification

The period in which such transaction has occurred, the income statement of a business entity or statement of activities for not-for-profit entity (NFP) for current and prior periods should report the result of operation of component along with the gain or loss recognized in discontinued operations.... In a period in which the component of entity which has been disposed of or classified as held for sale, the income statement of the business entity or statement of activities of not-for-profit (NFP) entity should have the result of operation of component and gain or loss incurred in discontinued operations....
4 Pages (1000 words) Essay

Casino Management

Business memorandum Casino employees Management Re: ID checks Attn.... I know that some of you will say, business is business, but we are talking about the reputation of the casino here.... I know that as a local business owner and a member of the town council, you are aware of the importance of casinos to our economy....
2 Pages (500 words) Essay

BUSINESS MEMORANDUM ASSIGNMENT

4) The writer Business memorandum ASSIGNMENT MEMORANDUM 04 01 To Ms.... Securities and Exchange Commission (1998), SEC Disclosure documents must be presented in plain English.... Companies are encouraged to use simple English in order for investors and the public to easily review and… In addition, plain English disclosures will help protect investors with the federal securities laws....
2 Pages (500 words) Essay

Cathys Clothing case study

hile taking financial considerations in implementing the Cathy's Clothing Case Study Business memorandum Memorandum The New England Regional Manager Coastal District Manager for Cathy's Classic StoreDate: 10/12/2011Re: Bonus provisions to managers in the Coastal DistrictFollowing my agreement with the New Haven and Boston Stores' managers to compensate them on performance grounds with bonuses; I prefer to inform you that the deal is due this month of May.... I consider such differences and reward any store that spends strategically and sparingly on their daily business operations....
2 Pages (500 words) Essay

Operations Management course. Memo

Business memorandum Bruce Chan, Managing Director Cc: Jung Lee, Production Manager Sarah Brooke, Head of Sales DepartmentRef: ‘CX Technology' by Ketan Bhole, Jordan Lee, Eileen Lu, Idrajit Sen.... Analysis of the situationAlthough CX Technologies has been able to maintain its position in the market, growth has plateaued and with the incoming recession, business is set to go down further.... xpand the branch in Taiwan, since it offers more lucrative opportunities for doing business in Asia....
2 Pages (500 words) Case Study

The Ways of Evaluating Teachers

It is also discussing on certain impacts that the involvement of the parent in school offers to the academic scores of the student.... Teachers are also very… These are well prepared in the Microsoft Access documents that are attached.... It will use the performance of the students as either escalating or dropping and ascertain the possible From the performance, it can be noted that teacher Smith is rated good in all the years both in first grade as well as second grade....
2 Pages (500 words) Essay

A Review of Magna Carta College Oxfords Website

For example, the website highlights its content through simple words such as, learning resources, of school Business memorandum To From A review of Magna Carta College Oxford's Website A reviewof the Magna Carta's website shows an effective use of most of the strategies for reader-centered communication....
1 Pages (250 words) Essay

Incorporating Graphics Into the Justification Report

Most justification reports are designed in the form of a Business memorandum. ... Most justification reports are designed in the form of a Business memorandum.... Currently, incorporating graphics into justification report has become almost a necessity.... A justification report is mostly used when there is a need to persuade, for instance,… It is paramount to understand the format of your justification report before adding any graphic....
1 Pages (250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us