Introduction
The name of the business is Fashion Clothing. It is an online and mail-order clothing business. The company’s strategy is to cater directly to the final consumer. To achieve this, the company is using a combination of aggressive marketing across a range of different media and also it has employed the use of an automated website that accepts online orders. The business is meant to commence on the first of July 20x5.
Summary of the first 6 months business operation
The business performance for the first 6 months of Fashion Clothing is viable and encouraging. To avoid liquidity problem the company would have to take a bank overdraft of at least 250,000 pounds. The bank overdraft is to aid payment of suppliers and operating expenses
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It focuses on the sources and uses of cash through operating, investing and financing activities. Activities that result in the receipt of cash are cash inflows, and activities that result from the spending of cash are cash outflows. SEE APENDIX III
STATEMENT OF FINANCIAL POSITION also known as the balance sheet presents the financial position of an entity at a given date. It is comprised of three main components: Assets, Liabilities, and Equity. Statement of financial position helps users of financial statements to assess the financial soundness of an entity in terms of liquidity risk, financial risk, credit risk and business risk. The amounts reported on the statement of financial position are the amounts as of the final moment of an accounting period.
INCOME STATEMENT: which is also called a profit and loss account is a financial statement that measures a company’s financial performance over a specific accounting period. Financial performance is assessed by giving a summary of how the business incurs its revenue and expenses through both operating and non-operating activities. It also shows the net profit or loss incurred over a specific accounting period, typically a year. One important thing to note about an income statement is that it represents a period of time like the Cash flow statement. This is contrast with
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This gave an overview of the status of the business at the first day of operation. Cash at bank was 50,000 pounds while non-current tangible asset was purchased at 150,000 pounds making a total of 200,000 pounds which was introduced as capital at the beginning of the business.
After drawing up the cash flow forecast statement it was deduced that a bank overdraft of 250,000 pounds was needed so to avoid liquidity issues as the months progresses. The introduction of the bank overdraft came at an estimated cost of 3% monthly. After deducting the monthly outflows from the inflows a positive balance is available for the 6 month duration.
From the income statement prepared it can be seen that a total sales of 1,350,000 pounds was made at a cost of 390,000 pounds. The gross profit for 6 month is 960,000 pounds. The gross profit margin was calculated as GROSS PROFIT/SALES which gave us 71%. The gross profit margin is good as regards to the volume of sales made for 6
Thus, they are in a position to cover any debt obligations that may come up quickly. Their inventory turnover has been relatively steady over the five years of data. In year 7 their inventory turnover reached 3.2 which means inventory is moving through to customers at an increased rate over the year which correlates with their increased sales. This statement is supported by the fact that the days inventory held for stoves has dropped over the past five years from 146 days in year 3 to 114 days in year 7. These reductions have allowed for the reduction of their days in accounts payable from 51 all the way down to 11.
FSA Practice Essay: Clothing Over Time Clothing has existed in many cultures for thousands years, and clothes have advanced in their style and functionality over all of these years. From ready-made apparel used in the America Civil War to using computers to design clothes during the 21st century, clothing has come a long way from its origins. Preferences in clothing changed drastically as well, going from preferring style over comfort to comfort over style and back again countless times throughout the years. Overall, the evolution of clothing has been one of the biggest in terms of items for humans and will most likely grow even further into the future with new and better technology.
This idea of this Mondrian Collection dress by Yves Saint Laurent was inspired from the painting by Piet Mondriann who was a Dutch artist born in 1872 . Besides, Piet Mondriann’s was familiarly linked to his religious and philosophy studies and later he was get attracted by the theosophical movement which also affects his painting later on. He was also one of the members of the Dutch art group called De Stijl which is also known as Neoplasticism found in 1917 in Amsterdam, it was a mixture of art and architect which using only primary colors, red, blue and green next to some vertical and horizontal black lines in a grid with a white background.
The last product that this company produces are the flow controllers. Flow controllers are products that are very customizable but are not as competitive on the market demanding higher prices. The planned gross margin for the flow controllers was 35% with an actual margin of 41.%. There was a significant increase without the loss of any business. The Wilkerson company have a quality leadership team; however, there are some things that needs to be changed for the company to succeed and prepare for potential price
1) a. current liability: Money that a business owner must pay to a creditor within 12 months of the balance sheet date is a current liability. Ideally, short-term assets, such as cash and accounts receivable, should more than offset short-term liabilities, such as accounts payable, notes payable and payroll. If they do, the company 's short-term liquidity position is positive, which suggests the company will likely meet its cash-flow needs and remain a going concern. It is wise for a business owner to remain alert to his company 's current liabilities and the cash and assets that will be turned to cash within one year to meet these obligations. 1) b. Long-term liabilities are due more than a year after the balance sheet date.
According to Braun and Schneider (2008) costumes during the naturalistic period were considered “casual.” A “casual” costume consisted of a sweater, pants, and shoes for men and a plain shirt and skirt for women. This was in part due to the fact that settings were also considered casual like a living room or a kitchen (Braun and Schneider, 2008). Clothing during this period were often darker colors. Men’s clothing usually consisted of multiple layers including a button up shirt, vest, over coat with tails, and long pants.
In the 1950's fashion was a lot different from 2015! We may have dark flannels and comfortable sweaters, but they had poodle skirts, chinos, and black leather. You decide if World War 2 completely changed the fashion industry! "Korea. It was supposed to be a short-term"police action."
Second Assignment – Annotated Bibliography and Thesis Statement by Cheryl Chi Yue Leung (214185045) York University NATS 1840 15th January 2016 Thesis: How material elements of the modern fast fashion practice reinforce the meanings of unethical production, and thus explain low prices come with low product quality and negative environmental and social impacts Annotated Bibliography 1) Anguelov, N. CRC Press. (September 2015) The dirty side of the garment Industry: fast fashion and its negative impact on environment and society.
In order to, analyze the company’s performance, we will closely focus on financial performance which is the degree to which financial objectives have been accomplished. This process measures the result of the overall financial health of the company over a period. The most efficient and effective metrics we choose were the improving operating income and return on equity and increasing sales, earning per share. Firstly, our sales have gradually increased in every single period, despite the minor changes in initiatives.
It usually correlates with business affairs since the contractual agreements and financial obligations of the departments are parallel between the both of them. In order to make money, the record company takes money and the accounting department estimates the budgeting requirements for each department. Usually, the record label creates a complex forecast model that calculates profitability. The accounting departments conducts an analysis based on the Profit and Loss report. What is the ‘Profit and Loss statement’?
Competition is high in the clothing industry, but good strategies plus skills, hard work and commitment from Ted Bakers team has enhanced the attention given to the company in the clothing industry. Ted Baker working culture has enabled it to attract a huge customer base and this has put it in a position to compete with well established brands such as Primark. By opening new stores in the overseas market, the company is positioning itself to become a market leader in the lifestyle designer brand
For instance, the world population is aging (OECD, 2013a), therefore, changes in demographic may be dangerous to solely teenage-oriented apparel firms based on the fact that competition for that segment is gradually diminishing (e.g. Coneen by design ltd). Nevertheless, these could be an opportunity for open and more flexible existing fashion retailers. Nowadays, customers are demanding for convenient shopping experience due to limited time in accessing or going to the market in person. Therefore, fashion or clothing firms with quality and easy to navigate web page will attract more customer (Chaturvedi, Martich, Ruwadi & Ulker, 2013).
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value
Emergence of fast fashion has brought a drastic change in the fashion industry on a global level. Over the past decade it has brought a significant development in the retail sector as well as consumer behavior. This essay highlights the challenges and the opportunities as well as short term and long-term impacts of fast fashion on the industry. Fashion is a style of clothing or dressing at a particular time or place. Fashion is dynamic that is it keeps changing or evolving with time.
Moreover, although the sales turnover of Unilever Plc has decreased, the operating profit and net profit still remain increased. The most highlighted part of this assignment is Unilever