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M1 Unit 4 Business

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Introduction
This report will explain how spreadsheets can be used to solve complex problems that the organisation, Inter City Sports have and what methods would be used for interpreting methods to analyse data. The complex problems will include how the organisation can use cashflow forecasting, budget control, what if scenarios, sales forecasting, payroll projections, statistical analysis and trend analysis.

Cashflow Forecasting
Cashflow forecasting is where business estimate how the money of the business will be spent and how much money the business will make. A cashflow forecast is usually yearly based however they can be used weekly or monthly. They can be used to know if a business is going to have a bad month and may need to take out a loan to cover any additional costs. They can also be used to see if a business is going to have extra money and they might plan to improve the business or organisation. Inter City Sports would add used spreadsheets to add up what they know they will have to pay. For example, monthly they have to pay their lease payments, insurance, utilities and more, Inter City Sports would add up all of these monthly expenses and if they were doing a yearly cashflow forecast they would times them all by 12 and add them up. Then this would be what the business definitely has to pay …show more content…
They would also have to include the cost of the staff which they have working in the organisation. To work out how much money Inter City Sports would make they can only estimate how much money they will make because they cannot guarantee how much money they will make each month. Inter City Sports can use

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