Homework answers / question archive / W22-Small Business Financial Management -Final Term Project (30%) Instructions : @ @ Oo | _ Final Term Project (30%) _ This assignment relates to the following Course Learning Requirements: - CLR 1 - Prepare a simple cash flow, income statement, and balance sheet from a trial _balance

W22-Small Business Financial Management -Final Term Project (30%) Instructions : @ @ Oo | _ Final Term Project (30%) _ This assignment relates to the following Course Learning Requirements: - CLR 1 - Prepare a simple cash flow, income statement, and balance sheet from a trial _balance

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W22-Small Business Financial Management -Final Term Project (30%)

Instructions :

@ @ Oo |

_ Final Term Project (30%)

_ This assignment relates to the following Course Learning Requirements:

- CLR 1 - Prepare a simple cash flow, income statement, and balance sheet from a trial _balance.

| CLR 2) Perform rudimentary bookkeeping transactions. |

. (CIR 3 3 Summarize the legal information and key components of a payroll system suitable for a small business.

(CLR 4)- Prepare a feasibility analysis based on selected criteria for a smal! Business startup. MAT SA’ only

: ¢ CLR 5 - Select critical success factors appropriate for use ina planning and control system for small business. |

| ¢ CLR 6 - Develop a credit and collection policy for a small business.

: « CLR 7 - Apply selected methods of business valuation to justify a purchase decision. :_ Objective of this Project

To demonstrate good financial management practices including payroll for a small business,

_ conduct a feasibility study, and performing valuation analysis for a small business purchase. |

~ Pre-Project Instructions

1. To prepare for this assignment, review the content in Modules 1 to 13.

2. Review the activities in Excel spreadsheets for modules 3, 4, 5, 10, 12, and 13.

3. This final project is divided into 5 parts. :

4. Read the scenario below.
Scenario :

Ken has graduated from an Ontario college business program and js ready to start a new venture in landscaping. His business name will be Ken's Landscaping Enterprises (KLE). : He first plans to build clientele by providing a simple lawn cutting service. Future plans | include adding services such as tree planting, laying decorative stone, and building :

: decks. Eventually he would like to add snow removal to provide year-round services for his clients. |

~ Project Tasks

« Record transactions of the new venture |

2 « Prepare financial statements .

. - Evaluate its performance. |

| ¢ Develop a payroll system for this business. :

, « Describe practices to develop a good credit history.

| « Identify and describe sources and types of funds available to finance the growth of |

: the venture.

« Analyze the potential purchase of another business. |

These tasks are broken down in to 5 parts. Complete the tasks below with the intentions of

_ providing good financial management and evaluation processes for Ken's venture. :

Part 1: Record transactions and create financial statements in Excel - (65

~ marks) [CLR 1, 2]

a. (35 Marks) :

 

Go to the Excel file, <MGT2303 - Final Project>

| Go the worksheet called <T-Accounts and Trial Balance> and you will see Ken's initial transactions for the month of April 2021.

i. Record these transactions into the T-Accounts (21 marks) |

| li. Create the trial balance. (44 marks)

b. (30 Marks)

| In the same Excel file, MGT2303 - Final Project

: Go to the worksheet called <Financial Statements> :

i. Create the Statement of Income for April, 2021 (10 marks)

ii. Create the Balance Sheet for April 30, 2021 (15 marks)

lii. Create a simple cash analysis showing cash-in, cash-out, and the cash balance. |

(5 marks)

i ( Part 2: Describe good financial practices in WORD (10 marks - 300 - 500

_ “words in total) [CLR 5, 6]

Background |

KLE ts growing. With this growth, Ken feels he is so busy getting new customers and :

: keeping up with servicing his current customers that he has little time to determine what —

policies he should create so that the business follows good financial practices. He is mostly concerned about ensuring he develops a good credit rating as he believes the |

| next phase of the company could require financing. Ken is also concerned with ensuring cash flow is managed well. He knows he has customers that pay on credit but is not sure | if they are paying on time or if any customers are long overdue. ]

a. (6 marks)

Describe three practices Ken must do to ensure he develops and maintains a good |

credit rating. .

b. (4 marks)

Describe two practices Ken must do to ensure that accounts recetvables are being :collected within the time allowed. |

_ /Part 3: Conduct a feasibility study in WORD (15 marks - 500 - 750 words

CLR 4] |

Background

Ken is ready to grow his business. He is mostly concerned about the existence of a |

market for him to grow his business. He is also concerned with how he will finance his ,business. He believes he will need an additional $50,000 in cash for this next phase.

a. (5 marks)

Describe what Ken should do to conduct a market feasibility study for his business.

Include in the description both quantitative and qualitative analyses. Make sure you

do not generally describe a market feasibility study but describe how that study |would be specifically adapted to Ken's business. | |

b. (5 marks)

: Describe three different sources (excluding love money) and 2 types of financing that will be available to Ken.