Assignment Task
Task
Case Study Background
Having all recently been made redundant, Mark, Bernado and Niki decide to set up a “customer-focused” information technology services agency based in Ruritania1. The new business will design and deliver IT-enabled business solutions. They want to grow the business rapidly with minimal investment and hence they propose to co-ordinate a group of self-employed consultants. The consultants will be completely customer-focused to maximize the generation of fees, with Mark, Bernado and Niki providing a professional and efficient marketing and administrative support service. They agree some medium term goals: annual sales of €10m, at a 30?IT margin by 2020. They form a limited company, ABC Ltd., and each of them subscribe for 20,000 €1 shares in order to start the business on 1st July.”
A-Plus Writing Help For University Students
Get expert assistance in any academic field. All courses and programs covered.
Get Help Now!DETAILS
You are a firm of management consultants and Mark, Bernado and Niki have sought your advice about the process of budgeting generally and about the amount of additional finance they will need from their bank. They show you their market research and provide you with the following estimates relating to the first 6 months of trading:”
You are also advised that the company will immediately purchase office equipment (computers, printers, a phone system) for €40,000 (half payable immediately, half on one month’s credit). Bernado and Niki will deal with administration and support services and will be paid wages one week in arrears (for simplicity assume 4 weeks per month). Office expenses are paid in the month after they are incurred.
The anticipated patterns of cash receipts from customers and cash payments to consultants over the first six months are as follows:
Mark will be paid €11,000 per month (in the third week of each month) and will be responsible for sales and marketing. Mark claims that he needs a car “that will impress consultants and customers” and so the company plans to take delivery of a €60,000 BMW on 1st August. The BMW dealer has kindly agreed to give IBN one month’s credit. The car’s running expenses will be €2,000 per month payable in the month they are incurred. The new business will be launched with an advertising campaign which will cost €23,000, payable in full in August. Office facilities will be rented for €10,000 per quarter, with rent payable in advance (hence payments in July, September and December).
REQUIRED: (Refer next sheet for Template to filled)
Prepare a presentation and a consultant’s report suitable for Mark, Bernado and Niki covering the following issues:
1. Explain why careful planning and budgeting is essential for business success and briefly advise Mark, Bernado and Niki how to get the best results from the planning and budgeting process.
2. Use the pro-forma spreadsheet provided to prepare a cash flow forecast for the first 6 months of trading, and to prepare a forecast income statement for the 6 months to 31 December, and forecast statement of financial position as at 31 December.
3. The bank has agreed to a maximum overdraft facility of €50,000. On the basis of the cash flow forecast produced you are to advise Mark, Bernado and Niki.”
Welcome to our Online Essay Writing Agency. Securing higher grades costing your pocket? Order your assignment online at the lowest price now! Our online essay writers are able to provide high-quality assignment help within your deadline. With our homework writing company, you can order essays, term papers, research papers, capstone projects, movie review, presentation, annotated bibliography, reaction paper, research proposal, discussion, or another assignment without having to worry about its originality – we offer 100% original content written completely from scratch
We write papers within your selected deadline. Just share the instructions
