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BTEC Assignment Brief
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Qualification
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Pearson BTEC International Level 3 Subsidiary Diploma in Business
Pearson BTEC International Level 3 Foundation Diploma in Business
Pearson BTEC International Level 3 Diploma in Business
Pearson BTEC International Level 3 Extended Diploma in Business
Pearson BTEC International Level 3 Subsidiary Diploma in Enterprise and Entrepreneurship
Pearson BTEC International Level 3 Foundation Diploma in Enterprise and Entrepreneurship
Pearson BTEC International Level 3 Diploma in Enterprise and Entrepreneurship
Pearson BTEC International Level 3 Extended Diploma in Enterprise and Entrepreneurship
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Unit number and title
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Unit 3: Business Finance
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Learning aims
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B: Understand how financial planning tools can be used to analyse financial data and assess business risks
C: Understand how financial statements for a sole trader are prepared and used to analyse and evaluate business performance
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Assignment title
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Investigate, plan, improve!
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Assessor
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Hand out date
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Hand in deadline
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Vocational Scenario or Context
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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
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Task 1
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Choose a sole trader of your choice, but ensure you can have access to the appropriate financial data.
You will need to present your findings in a financial report to the sole trader.
Write a title for your report and an introduction to the business.
Part One of your financial report must include:
· An explanation of the purpose of:
o Cash flow forecasts and statements
o Break even analysis
for the selected sole trader
· An accurate cash flow forecast and statement and a break-even chart and calculation
· 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 detailed examination of the factors that impact on the business risks.
· A broad range of conclusions and actions that the business could take to address these risks, based on the analysis of your calculations
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Task 2
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Part Two of your financial report must include:
· An explanation of the purpose and the main components for sole traders of:
o Statements of comprehensive income
o Statements of financial position
· Using the financial data from the sole trader, you must prepare an accurate:
o Statement of comprehensive income
o Statement of financial position
These must be professionally accepted and in a vertical format
· For both of the above statements, you need to make adjustments for:
o Depreciation
o Prepayments
o Accruals
o Changes in capital
· Accurate ratio calculations (measuring profitability, liquidity and efficiency), using data you have extracted from the above statements
· An analysis of the business’s performance i.e. a detailed examination of the ratio calculations
· A wide range of justified recommendations for improving the business’s performance, based on the outcomes of the ratio analysis.
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Checklist of evidence required
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Financial report including:
· cash flow forecasts and statements
· break-even analysis
· risks and possible solutions
· statement of comprehensive income
· statement of financial position
· ratio analysis
· recommendations on how to improve the business’s performance
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Criteria covered by this task:
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Unit/Criteria reference
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To achieve the criteria you must show that you are able to:
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3/B.D2
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Evaluate the impact of different factors that impact on financial risks in a given business context.
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3/B.M2
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Analyse the factors that impact on financial risks in a specific business context.
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3/B.P4
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Perform appropriate calculations using financial planning tools to identify financial risks in a specific business context.
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3/B.P3
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Explain the purpose of financial planning tools in reviewing financial data in a specific business context
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3/C.D3
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Justify recommendations for improvements to business performance for a sole trader, arising from own preparation and interpretation of business financial data
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3/C.M3
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Assess business performance of a sole trader by manipulating financial data and making suggestions for improving business performance
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3/C.P6
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Explain ways to improve profitability, liquidity and efficiency in a given business context
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3/C.P5
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Prepare and interpret financial statements for sole trader businesses.
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Sources of information to support you with this Assignment
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N/A
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Other assessment materials attached to this Assignment Brief
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None required
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Investigate, plan, improve!
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|
Assessor
|
|
|
Hand out date
|
|
|
Hand in deadline
|
|
|
|
|
Vocational Scenario or Context
|
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
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|
|
|
Task 1
|
Choose a sole trader of your choice, but ensure you can have access to the appropriate financial data.
You will need to present your findings in a financial report to the sole trader.
Write a title for your report and an introduction to the business.
Part One of your financial report must include:
· An explanation of the purpose of:
o Cash flow forecasts and statements
o Break even analysis
for the selected sole trader
· An accurate cash flow forecast and statement and a break-even chart and calculation
· 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 detailed examination of the factors that impact on the business risks.
· A broad range of conclusions and actions that the business could take to address these risks, based on the analysis of your calculations
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Task 2
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Part Two of your financial report must include:
· An explanation of the purpose and the main components for sole traders of:
o Statements of comprehensive income
o Statements of financial position
· Using the financial data from the sole trader, you must prepare an accurate:
o Statement of comprehensive income
o Statement of financial position
These must be professionally accepted and in a vertical format
· For both of the above statements, you need to make adjustments for:
o Depreciation
o Prepayments
o Accruals
o Changes in capital
· Accurate ratio calculations (measuring profitability, liquidity and efficiency), using data you have extracted from the above statements
· An analysis of the business’s performance i.e. a detailed examination of the ratio calculations
· A wide range of justified recommendations for improving the business’s performance, based on the outcomes of the ratio analysis.
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Checklist of evidence required
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Financial report including:
· cash flow forecasts and statements
· break-even analysis
· risks and possible solutions
· statement of comprehensive income
· statement of financial position
· ratio analysis
· recommendations on how to improve the business’s performance
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Criteria covered by this task:
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Unit/Criteria reference
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To achieve the criteria you must show that you are able to:
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3/B.D2
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Evaluate the impact of different factors that impact on financial risks in a given business context.
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|
3/B.M2
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Analyse the factors that impact on financial risks in a specific business context.
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3/B.P4
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Perform appropriate calculations using financial planning tools to identify financial risks in a specific business context.
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3/B.P3
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Explain the purpose of financial planning tools in reviewing financial data in a specific business context
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3/C.D3
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Justify recommendations for improvements to business performance for a sole trader, arising from own preparation and interpretation of business financial data
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3/C.M3
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Assess business performance of a sole trader by manipulating financial data and making suggestions for improving business performance
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3/C.P6
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Explain ways to improve profitability, liquidity and efficiency in a given business context
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3/C.P5
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Prepare and interpret financial statements for sole trader businesses.
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