Accounting Business Plan

Refer to attachment for details
Scenario: After a few weeks of studying the role of accounting information in a business, you convince yourself that it is now the time to start on embarking a new small business. For this task, it is recommended to choose to start a simple trading or service business with a single product cost such as the Campus Fruit Juice Truck or other small businesses such as a coffee, doughnut or hot dog stand, soccer ball shop or a headphones shop, car wash, music studio/tuition, mini-golf hire, among others.
Chosen business: CAFÉ Business in Singapore, refer to some of the details provide in excel sheet, what is not provide, do reasonable assumption.

Your assignment: to prepare a business plan and the first quarter Cash Budget for this business, create transactions and prepare a column worksheet for each month for the first 2 months of the business operation, and develop financial statements and finally analysing your business liquidity and profitability. The following are the detailed requirements.
1. The Business Plan (15%) and Cash Budget (15%)
Prepare your business plan report as outlined in this instruction – _see details in the Business Plan section.
Based on the Business Plan, develop a cash budget (see note # 4) for the first quarter of your operation. You will base your cash budget on your business plan, incorporating the financial plan that you have outlined in your Business Plan.
2. Create hypothetical sets of transactions for the first two months of your business operation (10 -15 transactions (including adjustments) each month). Prepare a column worksheet (for recording your transactions as per Ch 4) for the end of each month. (20%)
3. Prepare a classified Income Statement (Statement of Profit or Loss) for each month and a Balance Sheet (Statement of Financial Position) at the end of each month. (15%)
4. After two months of operations, you want to know your business viability. Use your financial statements at the end of the second month to:
a. Calculate your liquidity, profitability, operating capability, and financial flexibility ratios (see template attached as a guide or create your own). Use applicable ratios according to your type of business. (15%).
b. Perform a horizontal analysis on both the income statement and balance sheet, place this in a table as an appendix to your report (using Excel is recommended). Based on your horizontal analysis, select one account from the income statement and one from the balance sheet that is of interest to you (e.g. it has increased or fallen sharply compared to previous years). Explain why you have selected these accounts and discuss why they are significant (e.g. what may have caused them to increase or decrease compared to previous years) (approx. 100- 200 words) (10%)
5. Prepare a paragraph summary of your business viability – liquidity, profitability, operating capability, and financial flexibility, express your opinion/outlook/expectation about the business (200-300 words). (10%)
The Business Plan
Prepare your plan according to the following list: (100 – _200 words each session, total approx. 750-1000 words)
1. Description of the business: (2 marks)
– Describe your business.
– Form of organisation of the entity; state the form of the small business you choose;
– Location; state the location of your business and the reason for you to choose that location.
– Goals; list at least three current and future expansion goals for your business. of the entity – briefly.
2. Marketing plan: (2 marks)
This section explains how your business will make sales (the demand of your product – based on the market research you have conducted) and how it will influence (promote, price, and distribute the product) and respond to the market condition.
– Hint: Assume that you have done some research on the business industry, make a brief statement about its prospect, its potential competitors, and how you will focus your advertising effort facing this. Note: Information on marketing/advertising costs estimation is to be included in the Financial Plan, not in this section.
Operating plan: (2 marks)
In this section, show some strategies to develop and support your product; this includes the business relationship with potential contract suppliers and customers and your plan for your business expansion in the future.
4. Environmental management plan: (2 marks)
For this assignment, you are required to only briefly describe some environmental and social concerns that your business can maintain, such as on the equipment, supplies, or materials you use in the business.
environmental concerns of food. ethically source, biodegrable material, food waste etc…
5. Financial plan – _Sources of capital/equity: (2 marks)
State the amount and the source of your business capital requirements – initial cash/investment by owners, purchase of start-up equipment, possible loans – _long/short terms, etc. When do you think you would have enough cash inflow to pay an instalment of a loan (if any)?
6. Financial plan – Projected financial performance: (5 marks) o the payment term set up by the suppliers.
o Estimated sales amount and the terms of payment you set up for them and other projected customers.
o Day to day expenses such as the monthly wages/salaries, utilities, depreciation of assets and other general & admin expenses, etc.
This section covers some estimations/assumptions of your business performance, including the projected sales and the relevant purchases, as well as predicted operational expenses, cash collections and payments (cash inflows and outflows).
Information in this section is the summary of key assumptions of your business Projected Financial Performance you have drafted in your discussion worksheet.
These data should be then being reflected into your cash budget, involving:
7. Prepare a Cash budget for the first quarter of your business operation, reflecting the assumptions in your plan. (15%)

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