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Summary Btec business Level 3 Unit 5 M1 D1 £5.48
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Summary

Summary Btec business Level 3 Unit 5 M1 D1

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This will help you achieve the pass Merit or distinction of unit 5 business accounting. I will help you so please do not copy it

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  • December 13, 2016
  • 4
  • 2015/2016
  • Summary
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What does the Forecast tell Ann about her business? P3
The forecast tells that her business is not working very well because
only 1 out of 12 she have got a positive closing balance this might
refer her to sale her personal things like house, TV, Computer etc. I
think Ann might be require a bank overdraft because it have got too
much money owing and I think this is a good idea for Ann because
this will help her in keeping good track record, Flexibility, timely
payments and she will also have less paper work however there are
also disadvantages and they are she could have a higher interest
rate, risk of reduction limit and risk id seizing. Other than Ann her
accountant might have been interest in reading this cash flow
forecast because this will also give him idea of what is happing in the
business. The employees might also have interest in seeing it
because they also wanted to know that their jobs are not at risk
because if it is a negative cash flow forecast the employees’ jobs will
be in danger.

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