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BTEC Business Level 3 Unit 5 M1
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BTEC Business Level 3 Unit 5 M1
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BTEC level 3 Diploma in Business Unit 5 Business Accountnn Daniil ChernatM1) You will now analyses the cash fow problems Supreme Sports Ltd minht experience
Many businesses struggle with a shortage of cash due to an expensive capital expenditure in one month
or a fall in sales. Supreme Sports Ltd is not an excepton either. They had some problems with selling
goods, as a consequence of that the closing balance was exceptonally small in March and April 2013.
There are several cash fow issues that have happened in 2013.
Above, you can see the cash fow of Supreme Sports Ltd and in the yellow color I have highlighted
problems in sales and stock. The diagram provided illustrates the sales and stock for Supreme Sports
Ltd. In March 2013, the stock was bought for £ 65000 and only £ 60000 was proft for sales. As a result
of that, Supreme Sports Ltd lost £ 5000. In additon to that, in November 2013, the stock was bought for
£ 100000 and only £ 90000 was proft from sales. So, Supreme Sports Ltd lost £ 10000 in November.
Furthermore, closing balance was efected because of the sales. The more sales Supreme Sports Ltd
make, the higher the closing balance is going to be. The less sales the business makes the smaller the
closing balance is going to be. The diagram bellow illustrates the informaton on closing balance.
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