Explore the functions and activities involved in financing, including costing, budgeting, accounting and the compilation and analysis of financial statements and reports

Overview

Financial management is one of the most important responsibilities of owners and business managers. They must consider the potential consequences of their management decisions on profits, cash flow and on the financial condition of the company. The activities of every aspect of a business have an impact on the company`s financial performance and must be evaluated and controlled by the business owner.

Learning outcomes:

  • Use financial management principles towards informed business decisions.
  • Demonstrate an understanding of financing in a business organisation
  • Explore the functions and activities involved in financing, including costing, budgeting, accounting and the compilation and analysis of financial statements and reports

Project 1

  1. Produce a forecasted operating budget for January 2021 to March 2021 for the Roma Restaurant only, and then suggest ways to improve the restaurant.
  2. Explain the uses and limitations of budgets in such a way which will enable you to convince Bob Marley to adopt them.
  3. A local tour operator would like to use The Italo Bistro as a lunch stop on its city tour. This would be an extra 20 covers3 a day on average on Wednesdays. She is offering to pay R15 a head for this. Would you accept the offer? Explain your answer.
  4. Analyse the Lovers Unlimited Group Ltd overall results using ratio analysis.
  5. It is three years since any of the Food and Beverage (F&B) outlets have been decorated and they are starting to look shabby. The General Manager has been given an estimate of R250 000 to redecorate them. He has told you that he plans to finance this by paying creditors late and using an overdraft. What would you advise him to do? (Suggest other forms of finance you believe would be suitable for these renovations to the F&B outlets.