Project B

Part 1
Access and interpret financial information:
Identify and interpret the range of financial information and reports required to monitor business
performance and operational or departmental activities.

The capabilities of a company or organization that are specifically linked to offering products
and/or services to customers are referred to as continuing operations. Production, delivering,
advertising, and making a sale are examples of business operations. Operating activities generate
the most of a financial statement and greatly affect whether or not this is financially beneficial.
Cash inflows from sales made, cash disbursements, taxation, and account payables are all
examples of the types of continuing operations Such operations are detailed in accounting records,
particularly the cash flow statements. Operating activities are distinct from making investments or
credit lines, which are corporation features that are not specifically linked to the supply of products
and services. Rather than, funding and going to invest activities aid the organization is operating
at peak efficiency so over a lengthy period. This implies that an industry's disbursement of equities
or securities is not regarded as a company's ability to generate.

Interest income and expenses are not included in operating income. For example, consider the
operations or a clothing Store. Among the activities that may be undertaken are the following:

• Purchasing supplies from manufacturers and pays tor workers in the clothes manuracturing
process.
• Spending for resources to be transported to the company and clothing to be transported
from factories to warehouses.
• Organizing transportation from warehouses to retall locations and small order customers.
• Employing people to work in warehouses and retail outlets tor a wage.
• Providing compensation to those in charge of operations.
• Having to pay taxes
• Renting warehouses and retail locations
• Fines or cash settlements from litigatioN, retunds, and money recovered from insurance
Claims are some of the less usual operating activities.

Income reports are documented describes a company's transactions and financial status. Federal
agencies, auditors, companies, and others frequently evaluate income reports to check the accuracy
and also for income, funding, and active investment objectives. The tollowing are financial
statements:

• Cash Flow Statement - The cash flow statement (CFS) assesses a firm's ability to produce
enough income to tulfill its current liabilities, cover operational expenses, and expand. The
accounting reports are supplemented bv the statement of cash flow.
• Balance Sheet - As a specific moment in time, the balancing paper provides a brief
overview of a firm's profits, debts, and shareholders capital. The snap was obtained at the
 conclusion or the financial period, as indicated by the period just at upper edge of the
income statement.
• Income Statement - The income statement mainly focuses on a cash low statement.as well
as expenditures throughout a specific period of time After subtracting the costs from total
revenue, the declaration vields an industrv's profitability referred to as net earnings. In
contrast to the accounting records, the statement of income stretches a period of time,
which really is per year published financial reports as well as a quarter for published
financial statements. This same financial statement summarizes sales revenue, expenditure,
net profit, and operating profit. It usually provides 2 to 3 years of information of
comparative purposes.

Part2
Provide financial information using correct financial terminology on six different operational or
departmental financial activities listed below:

• Average customer spend- Is the number expressing the central or typical value of
expenditure of customers for a period of time, including any deviations, opportunities or
potential impacts on operations.
• Daily, weekly and monthly transactions- A sales report is an analysis tool that provides
insights into the performance of various sales activities within a company. Using a daily,
weekly, and monthly transactions with team may the single most powerful action can take
to increase performance and generate powerful sales results.
• Departmental expenditure- (labour, stock purchased, wastage, etc.). Includeinformation on
areas where the department has over- or underspent, opportunities orpotential impact on
operations and any deviations from budget.
• Departmental income- (covers and gross income, commission earnings,occupancy and
gross income, sales, etc.) Include any deviations, opportunities orpotential impacts on
operations.
• Outstanding accounts- payable and accounts receivable and the impact this has oncash flow,
financial reports and operations. Include information on which reportingperiod these
payments are likely to be made or received.
• Quotations realised to sales- Include feedback on any trends, future salesopportunities, or
reasons for lost business (poor follow-up, cost, etc.).
• Sales performance- is a set of operational and analytical functions that automate and unite
back-office operational sales processes and is implemented to improve operational
efficiency and effectiveness.
• Stock levels- based on sales and wastage during the period. Information on how
thedepartment is managing stock loss and if adequate supplies are budgeted for.
• Variance from budget- is the difference between the budgeted or baseline amount of
expense or revenue and the actual amount. The budget variance is favorable when the
actual revenue is higher than the budget or when the actual expense is less than the budget.