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Btec Business Level 3 Unit 5 P2

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Modern College of Business and Science

BTEC Level 3 National Extended Diploma
Fall 2017

Unit 5: Business Accounting
Assignment 1: Cash flow
P1, P2, P3, M1 & D1

Submitted by
Zuwena Suleiman Seif
ID number 20178122

Submitted to
Mr. Bou

26th November 2017

INTRODUCTION
In this assignment, I will be explaining and show you how will I able to create the Cash Flow Forecast for one year from January 2018 up to December 2018. Also, I’ll explain the importance of record and keeping accurate financial data and how this record will help me to run and setting up my business. Not only that, but also, I will determine the closing balance of my Cash Flow Forecast in 1year which will base on the data that I’m going to predict in it together with …show more content…
P 2: In this task, I will explain my cash flow forecast by considering the following items which will base on my cash flow forecast that I prepared: -
Capital income: Is the money which invested by servers or other owners which later used to start or set up a business. Examples of income are mortgages and loan. In my cash flow forecast I had bank loan of OMR 20,000, capital OMR 6,500 and I had balance of OMR 16,900 that I used to start my business.

Revenue income: Is the money which business gets from its day to day activities either by providing services or selling goods. As the owner of the business I decided to buy two cars at the beginning of January and rent them. I started to get my car rents of OMR2,000 each month.

Capital expenditure: Is the money used by a business to maintain or improve their physical properties such as land, motor vehicles, buildings and so on. In my cash flow forecast the capital expenditure that I had were two cars and I bought them for OMR 17,510 that I rent them, and they brought me money each month from January up to the end of …show more content…
Problem 1: Repair and maintenance
The business spent more money in repairing while they have only two cars it rent which will make the business to get more cost and fail to pay the rest months. In cash flow forecast shows that the business was paying OMR 400 each month for only two cars and for one year will cost OMR4,800 which is too expenses for the small business like that.
Reduce the problem(recommendation)
To reduce this problem, the business should plan either how many days, weeks or months should make to repair their cars. In this at least it should plan to repair their cars after two or three months to reduce the cost because if it will repair for each month the cost will increase and may be the cars are good they don’t need any services. So, by doing that the business will reduce cost and will have enough money which will able to make services their cars for next months
Problem 2:

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