Financial Forecasting Essay Example | Topics and Well Written Essays - 750 words

Financial Forecasting - Essay Example The report also explains further information that needs to be reviewed to make the findings more meaningful. This performance analysis can be used by the management, the shareholders or the potential investors to identify with the performance of the company and in particular assess its strengths and weaknesses. Assumptions The following information is available for preparation of the marginal costing cost statement ?/Unit Direct materials 0.04 Direct labour 0.15 0.19 Selling price 0.5 The fixed production overheads include depreciation amounts to ?3,000 per month. For the first month, the sales are forecasted to be 1000 units and 1,200 units will be produced. A fixed selling cost of ?1,500 per month and a variable selling cost of ?0.02 per unit will be budgeted. There are no opening stocks. Discussion The company is projected to maintain a current ratio of 1.66 (53,800/32,433), which is a very healthy liquidity level and which will ensure that the company is able to service its short -term liabilities using short-term assets without difficulties. This also means that the company’s financial position will be strong and it will be hard for it to be declared bankrupt whatsoever. The company is expected to generate a shareholder’s equity of 42,248, a part of which will come from paid in capital and the other part will be raised from the sale of new stock. Besides this, the company is expected to retain earnings of ? 5,041, which will be expected to grow substantially considering the company will continue to generate attractive profit margins (Leonie, 2007). The forecasted balance sheet is represented in appendix 5. Appendix 4 represents the forecasted Income Statement. This statement shows that the company is going to make good money as revealed by the first year’s net income, which amounts to ? 5,041. This is a substantial amount of profits considering this will be the first year of operation, when the company will incur substantial operating c osts, especially on fixed assets. As such, it is expected that the company will generate handsome income from the second year of operation when the operating expenses will have dropped significantly. This remarkable performance will chiefly result from the huge sales (?50,000) that the company is expected to make because the soft drink products will be very popular with the customers. Huge sales are particularly where the company expects its sustainable growth to come from. Analyzing the cost statement (Appendix 1), it is apparent that the company will generate a gross profit margin of 62%, possibly indicating that the cost of sales will be relatively small, hence making the company’s business more profitable (Tamari, 1978). It is expected that this gross margin will increase substantially in the future. The profit margin of the company is 10% ([5041/50,000] *100), which is somewhat lower because it is the first year of operation and the non-operating expenses are naturally h igh. After recovering from the shocks of struggling to break even, this margin is expected to grow significantly (Pendlebury and Groves, 2010). The cash flow statement (Appendix 4) shows that the company will be expected to generate enough cash, which is required to sustain growth. The fact that there is no deficit means that the cash generation will be adequate to outpace growth and hence not much additional financing will be borrowed from outside. More so, the company will be generating sufficient cash to pay its short-term needs. Therefore, when the credit markets become tight, the company will not experience much difficulty as it can comfortably generate finance from internal resources considering its stable

Nat Turner Essay Example | Topics and Well Written Essays - 750 words

Nat Turner - Essay Example He was the property' of Benjamin Turner, a plantation owner. Nat Turner's mother and grandmother had been brought to America from Africa and hated the concept of slavery from the bottom of their hearts. Nat grew up deeply religious and intensely sharing his mother's views of slavery. He gradually believed that He was God's prophet chosen to lead his people out of slavery. An annual solar eclipse convinced Turner that God had signaled from the Heavens above to start a revolution and with seven other of his associates or friends who were also slaves launched a rebellion. The rebellion began with the house of Nat's new master Joseph Travis. Almost 50 white people were killed. Contrary to what Nat had planned the rebellion was crushed within 48 hours and he himself was captured several days later. Naturally this insurrection had incited public fury and led to a thousand idle exaggerated and mischevious reports' (Thomas R. Gray). It heralded the beginning of a series of upsurges of open rebellion of the slaves which eventually led to the Great Civil War. Everything was shrouded in mystery till the confession' of Nat Turner was brought to light. Thomas R. Gray met Nat Turner in prison and recorded his account of the slave rebellion .Nat Turner was regarded as the Great Bandit'. Thomas Gray claims he found Nat willing to make a full and free confession of the origin, progress and consummation of the insurrectory movements of the slaves of which he was the contriver and head'. (Thomas Gray) The Confessions of Nat Turner like all other confessions cannot be held to be a document of Absolute Truth. It is definitely a revelation of several facts most of which can be corroborated further but every convict even during the last confession of his life will be in fear of his captor even if faced with the gallows. Moreover, what he said has been written down by Thomas Gray in the prison cell. Just as what Turner said may have been directed by emotion so also what was finally written may have been tainted by the writer of this confession to satiate the greatly excited public mind'. The mind is fraught with the very pertinent question did Turner voluntarily make these confessions The Confession remains a subject of intellectual debate , "both praised as a brave look into a rarely represented life, and maligned for what many saw as a clichd conception of a black man.". (NAT TURNER: A Troublesome Property, Styron 1967) Nat Turner's rebellion marked a year that also saw the rise of the abolitionist movement, growing tensions over states' rights and the arrival of the steam locomotive.1831 proved to be a watershed year in American history (Louis P. Masur, author of 1831: Year of Eclipse). The hysterical climate that followed Turner's revolt, blacks from as far away as North Carolina were accused of being part of the insurrection and even executed. Harriet Ann Jacobs, who later escaped to freedom, describes this climate of fear and harassment in her memoirs, Incidents in the Life of a Slave Girl, Written by Herself. Nat 's confessions regarding his visions were probably correct and seem to be the words of a prophet who is convinced about his convictions. He sincerely believed that the Holy Spirit which spoke to prophets of earlier times actually spoke to him. He claims unabashedly that the Spirit told him "Seed ye the