In current assets, the ‘bank’ is classed as current assets because the money can be (liquid) made quickly by the bank. The same principle can be said for the stock. As you can see the balance sheet is balanced because the net asset and final capital is the same figure and balanced at 34266. This shows that I have no loss in money and it also shows that my accounts are fine because it balances. Overall this shows that the balance sheet provides a summary and valuation of the business assets, capital and liabilities.
If you look in my viable section, you can see my current ratio, which shows how liquid I am.As you can see, I have too many resources tied up in unproductive assets because for every 1 of debts Mcbains owes, I have 28653 of assets to pay. The ratio is so high, I can invest more profitability. These figures can be found in my profit and loss account.
As you can see from this ratio, Mcbains will be in a poor liquidity position because a preferable ratio would be 1. 1:1. Mcbains has 27753 to pay every 1 of debts. This can be a disadvantage to my profit and loss account because I didn’t add any creditors to my business, which would have decreased my ratio figure, so that Mcbains will be in a better liquid position.McDonalds Acid test ratio is 1.
99:1, which much better ratio than mine because McDonalds are a well established company compared to Mcbains. So I think my ratio is realistic because I have no creditors and high current assets, which gives me a high acid test ratio. C3 I have always wanted to open a business of my own, this business plan will really boost my motivation.
I feel it will give me a feel of what it takes to be a good enough businessman and the competition that will be faced.I found that it is difficult to start this business up in terms of other businesses already been established and well known – they are likely to get brand loyalty. C4 When I was making rough estimates on how much profit I would make over the first year, I was really disappointed. I decided to decrease by spending on equipments in the first month. How I did this was by purchasing the ’till’ later in the year (prices are shown in the appendix). Although it didn’t do much change in final figures of the year, but at least I was able to spread my costs over the year.
There is a smal orner shop selling clothes down the road from where I live, I was very close,~fro~ choosing that particular shop for my business plan. But the reason I did not was ecause customers will hardly visit it as it is placed in an isolated area. It may get a few customers during the week, but a higher percentage of the customers will intend to shop at high streets or the town centre, especially on weekends. I could have also chosen TV advertising to promote my product, but because my profits did not look good in the first year in my rough estimate I decided not to include it for the time being.Even though there was local Leicester channel called MATV, it still costs too much. But maybe in the second ar when my business is hopefully much more viable. A3 I also found that it was hard to get this venue and very hard to find out prices of other places available to me. To get better and more accurate information on rent for my venue, I should have spent more time searching through the Internet.
Searching through the Internet could save me much more time and would give me less hassle, as I wouldn’t have to go round Venues and Sports halls researching the rent and rates.Searching through search engines such as www. goo1e. com more often would be very helpful and less time consuming. To help myself in my finance section, I used Microsoft Excel. As I was dealing with a lot of figures, I knew that if I was to change just one figure in the table it would mess up the whole table.
Thank fully with Excel, I was able to program it in a way that if I was to change a figure, the computer will automatically change the appropriate figures saving me a whole load of time.