1. Download the Excel template to complete part A (attached).
2. Complete the Excel cash budget, income statement and balance sheet using the
templates provided. Textual headings in this template are protected. They contain all
the headings you need to complete the assignment and should therefore remain
password protected. Only the cells marked in YELLOW should be completed. You
can use other excel sheets for your workings (though these will not be marked), or
use this template, but please note you can only submit this template, and only the
first worksheet in the template will be used as the basis to mark part A.
1. To explain the relevant accounting principles governing the preparation of the Income
Statement that do not apply to the cash budget (15 marks)
2. In light of the forecasted cash and profit outcomes, they are asking you to suggest at
least 5 realistic recommendations to the structure of the proposed business that
would 1) generate at least an operating profit margin of 45%, and 2) ensure a
maximum cash deficit of no more than £50,000 in each of the trading months*. You
should use the template provided to do this, and post extracts whilst justifying your
recommendations. Please note, increasing the sales price is not an acceptable
recommendation since it implies zero demand elasticity.