Budgeting Group Coursework Scenario Your team of five students in seminar are planning to start up..

Budgeting Group Coursework

Scenario

Your team of five students in seminar are planning to start up your own business venture, making and marketing a single product using at least two types of both materials & labour; however as you only have £100,000 in cash personally to use towards this, you will need to prepare a summary business plan and supporting budgets in order to raise the additional finance required to meet your budgeted operations. You may assume that you can apply for the funds needed from a bank at their prevailing market interest rate.

A major task involves drawing up the following budgets for one year to resource your proposed activities and to persuade potential lenders to contribute finance to your business venture:

1. Table of Assumptions

. Any and all assumptions made in estimating figures must be researched, referenced, reasonable & clearly stated in this table

2. Budgeted Contribution Statement, Total contribution & C/S ratio

3. Capital Expenditure (Fixed Assets) Budget

4 Sales Budget s. Production Budget

6. Purchases

7. Direct Labour Budget

8. Overheads Budget

9.Cash Budget

**It is Imperative that budgets 4 – 9 include a total column for the 12 months**

10. Budgeted (Annual) Income Statement

11. Budgeted (Annual) Balance Sheet

12. Calculations showing the Break-Even Point in units, £ of sales & percentage

13. Calculations showing the Margin of Safety in units, £ of sales & percentage

. You must use spreadsheets in Appendices with formulae correctly applied for each of the budgets 2 – 13 above