From the above table it is observed that the Casey will be achieving negative cash balance at the end of every month which indicates that the barber shop will be running its business at loss if the above expenses and income are experienced by it for the next 6 months.
From the profit and loss account and cash flow budget mentioned in Task 1 it is evident that Casey’s barber shop will be running at huge loss if he does not modify the business structure. The owner should bring in appropriate changes in business so as to earn profit. The owner should increase the working hours from 6 hours a day to 8 hours a day so that the barber shop attends 24 customers a day instead of 18 customers a day. It will bring in revenue without increase in any further cost.
Adults are to be charged £ 25 for the first two months and then £ 30 for the next 4 months. The children should be charged £ 15. The table below reflects the changes that are made in order to have postive ending cash balance at the end of every month.
The charge of the services should be increased in order to bring in profit at the end of every month in the business. Adults are to be charged £ 25 for the first two months and then £ 30 for the next 4 months. The children should be charged £ 15.
The main aim of this section is to compare the financial statements of two listed companies published in their annual reports and examine the financial performance of the companies by comparing the performance of the financial ratios. The two companies that are chosen are ASDA Limited and Tesco Plc. Both the companies are dominating the supermarkets in United Kingdom. The data required for the ratio analysis are collected from the annual reports of both the companies. A comparison is drawn between the two with respect of their performance: liquidity, solvency and profitability. The presentation and the formats of the two company’s