REPORT

PREPARED BY: JASON ACKAH-MENSAH

FOR : BUSINESS TEACHER
DATE : WEDNESDAY, MAY 1, 2019
SUBJECT : CASH FLOW BUDGET FOR DRONE ENTERPRISE
1.0 INTRODUCTION

This report is written in part fulfillment of the IGCSE enterprise coursework that I

am going to be participating in. This report contains the cash flow budget for my

proposed project, and why it is important for an enterprise to draw up a cash flow

budget. This project also explains, using the cash flow budget I have drawn, the

significance of having a cash flow deficit or surplus.

2.0 CASH FLOW BUDGET DIAGRAM

₵ MAY JUNE

TOTAL RECIEPTS 100 150

PAYMENTS

MOTOR 7 12

BATTERIES 50 50

POPSICLE STICKS 10 10

PROPELLORS 5 5

WIRING 10 0

RC RECIEVER/ 0 20

TRANSMITTER

OTHER COSTS 0 50

TOTAL PAYMENTS 92 127

NET CASH FLOW 8 23

3.0 THE USE OF A CASH FLOW BUDGET

When running a business/enterprise, it is very important to draw up a cash flow

budget for various reasons. Cash flow budgets gives an indication of the financial

strength of an enterprise, this means that ones running the enterprise have an

idea about how much money the enterprise has and how much money it is

making.

Cash flow budgets also helps determine the rate of return of a particular project or

parts of the project. This helps the owners of the enterprise to see if a project is

really doing well and bringing in profit.

Some other uses for cash flow budgets are:

Risk analysis

Identifying problems and challenges with liquidity

Telling if a project has reached its overdraft limit

Identifying poor decisions

4.0 THE SIGNIFICANCE OF A CASH FLOW DECICIT OR

SURPLUS

To understand the significance of a cash flow deficit or surplus, we must first

define what is meant by ‘deficit’ and what is meant by ‘surplus’. A deficit is an

 amount by which a resource, in this case money, falls short of what is required. A

surplus is an amount of something left over, in this case money, when

requirements have been met.

The significance of a cash flow deficit is the fact that one fell short of what they

aimed to make as their revenue, so the cost of producing their product isn’t

covered, and they make a loss.

The significance of a cash flow surplus is the fact that enterprise has made more

than originally aimed at, and more money goes into the enterprise.

5.0 CONCLUSION

In this report, I have drawn a cash flow budget that will inform me about my

project work, I have also discussed why an enterprise will draw up a cash flow

budget and the significance of a cash flow deficit and a cash flow surplus.
 REPORT

PREPARED BY: JASON ACKAH-MENSAH

FOR : BUSINESS TEACHER

DATE : WEDNESDAY, MAY 1, 2019

SUBJECT : PROFIT AND LOSS ACOUNTFOR DRONE ENTERPRISE

1.0 INTRODUCTION

This report is written in part fulfillment of the IGCSE enterprise coursework

that I am going to be participating in. This report contains the profit and loss

account for my proposed project, and why it is relevant for an enterprise to

draw up a profit and loss account. This project also explains, profit and loss

account I have drawn, the significance of making a profit and loss.

2.0 PROFIT AND LOSS ACCOUNT DIAGRAM

$ $

Sales revenue

Less Cost of sales

GROSS PROFIT

Less Expenses

Wages and salaries

Heat and Lighting

Telephone and

Post

Advertising

Insurance

Other Bills

NET PROFIT

Government

Dividends

Retained Profit
3.0 THE USE OF A PROFIT AND LOSS ACCOUNT

The profit and loss account is a very important part of any enterprise. It is

basically a document and out of three parts (trading account, profit and loss,

and appropriation account), which shows whether a business has made a

profit or loss over a financial year. This can help a business to reduce their

losses and maximize their profit.

4.0 SIGNIFICANCE OF MAKING PROFITS AND LOSSES

It is very important to understand the significance of making a profit or loss. If

you make a loss, it means that you have lost more money than you gained

and one’s business may not be doing very well. If you make a profit, it means

that you have gained more money that you have.