FINANCIAL STATEMENTS PROJECT

Financial Statements Project



Financial Statements Project

For this Financial Statement Project, I have assumed a Bakery & Confectionary business. I have made twenty five transaction entries and prepared financial statements accordingly. The major products that I keep in my bakery are cakes, snacks, sweets, biscuits, and bread and general items. I have opened my first outlet in the posh area and then after few months I want to open the second outlet in the low income area in order to cover the cross section of the public. For this expansion, I need bank loan. Like my first bakery, the second bakery outlet will only be a retail outlet where I will purchase my items from the specialized bread manufacturing units. This particular business segment is labour intensive as the timings for my bakery will be from 6 am to 12 pm and I will run 2 shifts for the convenience of the employees. The number of employees that I will keep are 20 and 10 employees will be required per shift. Although the pure working hours in both the shifts will be 3 to 4 hours but because of the customer's availability, the single shift will cover 8 working hours.

The plants and machinery that I will require for my bakery will include variety of ovens to meet the requirements for the usage of different items like the cakes, pizza, pastries etc. The initial capacity of the bakery has been decided on the basis of aggregate sales over different periods of time. The bakery will even have to face fierce competition due to the presence of other famous bakeries in the city but my Bakery will certainly try its best to establish it's self in the market. In order to remain competitive, it will be necessary to meet the change in customer demands of both the bakery and general items. The proportion of sales of both the items can even vary. The bakery will be started as a sole proprietorship and the source of start-up capital would be 40% from Debt Financing such as the loans from the banks and 60% would be from Equity Financing.

The key success factors that will be very crucial for my bakery would be the range for the selection of products, the sitting area for customers, the innovative ideas and quality in the products, the location selection, the strategy for pricing, the identification of target customers, hygiene factor etc. The small business like the bakery are easy to manage and can be very profitable as well if the correct strategies are made for the operations. Therefore, as an Entrepreneur, the opening of a bakery will be a challenge for me because it will provide me an opportunity to present my ideas and knowledge for the successful operation of the bakery.

Capital is the essence for the success of ventures. Ventures need to use capital to run the business, such as product purchases, shop rent, to make profit, and even need more capital if ...