+91-9519066910
  • My Account
  • solution

    Finance

    Financial Budget With Resource Assignment Help

    Rating:
    Financial Budget With Resource Assignment Help


     FINANCIAL BUDGET WITH RESOURCE

    Executive Summary

    In this report a business plan is produce for the YZS hospitality firm. The firm needs to implement some principles in their business like the firm needs to maintain friendly and welcoming atmosphere at the hotels. The sales analysis of the firm also presented here that show the firm do a business of 240000 in the first scenario. The cost of goods sold a percentage of the firm is 70.43 and the current ratio of the firm 1.36 respectively.   This report contains a business plan of how YZS hospitality will conduct its business activities. It also mentions the various pricing policies to be adopted by the company such as sustainable and green pricing. Ways of waste management and capital management have also been discussed that are to be adopted by YZS hospitality.

    Introduction 

    Financial planning helps to meet the business objectives step by step. It helps the firm to control the expenses and set a spending limit for the firm. The financial statements help to estimate the financial position of the firm and give a clear idea to the inventors about the financial condition of an organization. The cash flow gives an idea about the amount of cash coming inwards and going outward in the business and ensures that the firm enough money to meet its business obligations. In this study, a business proposal has been presented, in there all the financial statement of the firm has been explained here.

    Activity 1

    Description About the business 

    YZS hospitality wants to open a new business in the UK hospitality market. This is a fully new firm and the firm does not have any previous idea about this industry. Mr. X is the owner of this firm and he wants that his firm will be one of the biggest hospitality businesses in the UK. The firm has decided to collect funds and capital for the firm from selling their share to the public. Although, there are some partners also in this business, therefore, they also contribute equal funds for the business investments. 

    Principle managing 

    The hospitality business is all about its principles and without following the principles the YZS hospitality firm can grow on a long-term basis. The first principle the firm needs to maintain is the friendly and welcoming atmosphere in the hotels. Then they need to maintain some principles for monitoring the financial performance of the firm. The firm will maintain all the financial statements for their business that will help them to know about their strengths and weakness in the business and with the help of financial reports they can improve their past mistakes in the organization.  

    Sales analysis 

    In the above table, scenario 1 is presented for a sales amount of 240000. In the first month product, one sold off 20000 and for the entire year is 240000. For the next four years, the total amount of sales are the same 240000 for one year, after adding the total sales of their five years the total sales amount of the firm revealed 1200000. For the second product, the first-month first month sales are 12000 and for the entire year, the total sales value is 144000. In the next four years, the total amount of sales remains the same that is 14400 respectively. The total sales for product 2 in the entire five years are 720000. The total sales of all products in the entire five years are 240000 and in the first month of total sales value is 60000. After that in the next five years, the total amount of sales is the same that is 720000 respectively. The amount of sales record in the five year period is 3600000.   

    In the above table, the revue structure of the YZS hospitality firm is presented as per scenario one. The total revenue 1 recorded in the first month is 20000 and for the entire year is 240000 respectively. After the first year, the revenue of the firm remains the same for the next four years. The total revenue earned by the firm in five years is 120000. The total revenue record in the firm for five years is 720000 in each year and for the entire five years, it is 3600000. The VAT amount paid by the firm is 21 percent of the total revenue that is 12600 in the first month. The vat amount paid by the firm in the next four years is 151200 and for the entire five-year total tax paid by the firm are 617400 respectively. The total revenue amount after including the VAT amount for the first month is 72600 and the next five years it remains the same that is 871200 respectively. The total revenue included VAT for the five years total is 4356000.

    Cash flow analysis 

    In the above table, the cash flow of the YZS hospitality firm is presented as per scenario 1. The firm has only 6159 in the second year apart from that there is no opening balance record in this firm. The cash received in a total of five years is 3254 and there is no other cash in hand recorded in this firm. Therefore, the total operating revenue of the firm in a total of five years is 3254 respectively.  The cash receipts from the customers in the five years is 2435 and collection receivable is 245 respectively. The operating revenue received is 2345 and after adding all this incomes the total operating revenue of the firm revealed 5034. The firm also collects extra cash with the selling of assets of the business that is 4578 in total five years. The funds borrowed from the inventors are 1247 and 2354 are collected as a tax return.  The other sources of cash inflow are 3654 respectively. After adding all these incomes the other cash flow of the firm revealed is 9724. The annual cash in for the business in a total of five years is 14758. There are some expenses that also need to pay by the firm for that the firm needs to provide 1761. The other expenses needs to pay by the firm are 801 for the five years. After deducting all the cash outflows from the cash inflows the cash balance of the firm shows 12196 for the total five years.

    Ratio aanlysis 

    The revenue of the firm with respect to per guest of the firm will be 10.032 and revenue earned by the firm for providing treatment per customer is 4.73 respectively. The revenue will be earned by the firm for occupying rooms is 22.26 and per hour treatment revenue earned by the firm is 9.71 respectively. The retail revenue of the firm per treatment is 14.38 and the percentage of the retail sales of the firm is 4.71 respectively. The cost of goods sold a percentage of the firm is 70.43 and the current ratio of the firm 1.36 respectively. The working capital of the firm shows 4933 and the working capital with respect to sales are 0.019 respectively. The profitability ratio of the firm shows that the firm will earn a profit of 70.43 and the return of asset scenario two respectively.

    Future management strategies 

    YZS hospitality firm needs to set their goals as per the short-term basis and long-term basis both and make strategies according to the situations. The firm needs to maintain the stock properly with the help of inventory management it will help them to utilize their resources and funds in the best way (Zolfani et al. 2018, 7440). Provide specific roles to all employees and provide the necessary guidance to them for effectively solve the issues of the financial condition of the firm. The inventory management will help them to estimate their budget appropriately and helps to reduce the wastage of materials. 

    Inventories management 

    Inventory management plays a very important part in the YZS hospitality firm and it helps to reduce the wastage of resources and the firm can effectively use their resources. The needs to implement the FIFO method while serving foods to its customers (Soboleva et al. 2018, p.2034). It increases the quality of foods and improves the trust level of the customers. They need to regularly audit their expenses it will help them to control their unnecessary costs of the firm.