Scribd
Upload
10 views2 pages

Heavenly Bites REPORT UNIT 3 Year 12

The document outlines a financial report for Heavenly Bites Bakery, a sole trading business in Bahrain, focusing on financial planning tools to analyze performance and assess risks. It includes cash flow forecasts, break-even analysis, and recommendations for improving business performance amidst competition. The report aims to enhance financial literacy and provide actionable insights for the bakery's owner, Shelly Murad.

Uploaded by

Adam Savvedes-Law
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
10 views2 pages

Heavenly Bites REPORT UNIT 3 Year 12

The document outlines a financial report for Heavenly Bites Bakery, a sole trading business in Bahrain, focusing on financial planning tools to analyze performance and assess risks. It includes cash flow forecasts, break-even analysis, and recommendations for improving business performance amidst competition. The report aims to enhance financial literacy and provide actionable insights for the bakery's owner, Shelly Murad.

Uploaded by

Adam Savvedes-Law
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Unit 3 Learning aim B and C

Understand how financial planning tools can be used to analyse


financial data and assess business risks

Scenario
You are a budding entrepreneur, looking to further your financial literacy skills. A sole trader has
approached you and asked for your help. They want you to analyse the performance of their business,
identifying the current business risks and suggest ways that their business performance could be
improved.

You realise this is a great opportunity for you to truly understand how financial information can help a
business monitor and improve their performance including how to prepare a formal financial report.
Your report should include the following:
 Title
 An introduction of the details that are included in the report

 Part One: Cash flow and break-even calculations and analysis, risks faced by the
business
 Part Two: Analysis of performance, conclusions and recommendations

Heavenly Bites Bakery – Financial Report


Shellys Cakes is a small Sole Trading business start-up providing a local service to Seef area of
Bahrain. The bakery owner, Shelly Murad, has hired five employees who run the small bakery. The
bakery sells competitively priced baked goods, to customers in the Seef area, with a delivery service
within a 10KM radius. The business can offer bespoke cakes at high-end price for special events with
advanced notice. These are not included in the regular pricing and instead quotations are provided on
order-to-order basis. The market attracts approximately 53,000 potential customers. Research
estimates that 13% are possible repeat purchasers. However, there is high competition in the area
with bakeries and cafes dotted around the region.

Heavenly Bites Bakery sells competitively priced goods to the local market with a percentage mark up
to ensure profit. They pride themselves on high quality without a high price tag. Their moto is
‘exceptionally good’ and they seek to produce consistency in each product to retain customers.

Competitors

Name of business Pros Cons

The purpose of monitoring costs…

How can we take measures to improve the business through monitoring our costs?

Part One of your financial report must include:

 Why finance is useful for business and why we keep accounts:

 An explanation of the purpose of:

Definition – what they are and their importance

 Cash flow forecasts and statements


 Break even analysis
Unit 3 Learning aim B and C

Analysing the benefits


 A detailed analysis of the factors that influence the business risks in relation to a cash flow
forecast and break-even analysis.

 You will need to create an accurate cash flow forecast and statement and a break-even chart
and calculation – financial information will be provided from the small business.

 Calculations and in-depth analysis using data from the sole trader’s cash flow forecasts and
statements and break even, to identify risks to the business. You should demonstrate your
understanding of common risks e.g. an increase in fixed or variable costs, a reduction in
selling price, decline in sales revenue etc.

 A broad range of conclusions and actions that the business could take to address these risks,
based on the analysis of your calculations.

You might also like