Wedding Specialist Financial Evaluation Essay

TABLE OF CONTENTS

1 . List of Appendices

2 . Exec Summary

three or more. Introduction

5. Analysis

5. 1 Monetary Performance

4. 2 Credit Management

some. 3 Raising Earning Power

4. four Inventory Supervision

4. a few Debt Management

some. 6 Building Business to increase profits

five. Conclusion/Recommendations

six. References

six. Appendix

1 . LIST OF SORTIE

1 . Current Ratio Calculation (as in 31st Aug 2010)

2 . Equity Proportion Calculation (July 2010 & August 2010)

3. Personal debt Ratio Calculation (July 2010 & Aug 2010)

four. Receivables Yield Calculation (August 2010)

five. Average Collection Period Calculations (August 2010)

6. Inventory Turnover Computation (July 2010)

7. Inventory Turnover Calculation (August 2010)

8. Come back on Total Asset (as at thirty first August 2010)

9. Profit Margin Calculations (July, September & YTD 2010)

15. Financial Statements & Program Reports

installment payments on your EXECUTIVE OVERVIEW

Wedding Bells Boutique is known as a small retail business, structured as a partnership with two partners specializing in the buying and selling of bridal gowns and accessories. This kind of report offers an analysis and evaluation of the current and prospective economic performance, fluid, credit administration, earning electricity, inventory managing, debt management and tax placement of the business as for 31st Aug 2010. Methods of analysis are the manipulation of current, equity and financial debt ratios and also other calculations including profit margins, come back on total assets, accounts receivable turnover and inventory turnover. These kinds of calculations are available in the appendices. Results of the analysed data show the business has been able to produce a small income over a two month period on very low turnover which is also showing great temporary liquidity. Additionally it is free of virtually any major debts. Of concern however is the charge of returning on possessions, rate of inventory yield and the level at which accounts receivables are collected, all of these are not carrying out well. Outlined below are aspects of weakness that require immediate treatment: * Increase average collection period pertaining to accounts receivable by making repayment terms very much stricter, put into practice discount bonuses for early payment about credit acquisitions and further discount for cash purchases, 5. Improving/increasing inventory turnover simply by marketing the business enterprise better and ensuring assistance standards are maximised to make sure business will be built up and a good reputation can be forged. The real key focus ought to be on bettering the rate of return in assets and substantially raising the small net profit and revenue that is currently being built. It is very clear that the just way this could be achieved through utilising ideal assets such as the funds inside the investment account. It is by reinvesting these kinds of funds the business is going to substantially increase its current revenue stream, or build new revenue streams to compliment it. Investing in to some of the next areas will help with this diversification: 2. Introducing a men's wedding party attire and accessories selection, * Enter the hire market: men & women – any occasion such as school balls, * Dry out Cleaning Service to the public,

* Website link with other bridal services to pool methods and refer business to one another, * Internet site and social network marketing to promote business, 5. Contact almost all Bridal Expo's and Wedding Planning Publications to get exposure. It must be pointed out that the analysis in this particular report offers its limits, which as a result restrict the scope. A lot better insight is essential, allowing analysis of earlier periods/years financial results, as well as a sound understanding as to its budget forecasts. Only after that would a comprehensive analysis of Wedding Alarms Boutiques current situation and possible foreseeable future be total.

several. INTRODUCTION

This report provides information based on the examination of the monthly financial reports of " Wedding Bells Boutique”, which can be...

References: 1 . Current Rate Calculation (as at 31st August 2010)

2

3. Debt Ratio Calculation (July 2010 & August 2010)

4

a few. Average Collection Period Calculations (August 2010)

6

several. Inventory Yield Calculation (August 2010)

almost eight

9. Revenue Margin Computation (July, August & YTD 2010)

15

* Recent is month even compares to previous month

The profit perimeter for September was 24% with a net profit figure of $4, 142 although August went back 12. 5% and $1438. 06 respectively (Hogget, Edwards, Medlin and Tiling, 2009, p851)

2. Equity Rate has shown to get very high for 2 consecutive a few months – 89% and 81% in This summer and September respectively (Hogget, Edwards, Medlin and Tiling, 2009, p857).



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