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Assignment week 6

French Bakery

Kawtar Ben Hadouch

Southern States University

BUS480

5/20/2022

French Bakery- Sales Forecast, Cash Flow, Profit/Loss

A sale forecast involves the estimation of the organization's future revenue by predicting the number of sales or services to be offered over a specific period. The manager in charge of sales predicts the amount a sales person or a team can make and the customers they are targeting. Sale forecasting relies on seasonality, market trends, and social media trends. An example of my sale forecast for one month;

Product	Unit Sales	Unit Price	Sales
Coffee Cakes	472	$ 11.90	$5355
Bread	1537	$ 2.59	$39549
Cookie	620	$ 1.21	$ 632
Muffins	598	$7.17	$ 3986
Cheese Cakes	658	$ 9.50	$ 6194
Total	3885		$55716

The target customers will be all households within California and residents of the same area. The executives targeted will include teachers, students, and other workers who would need a bakery product.

If the sale forecast is accurate, an organization will use it to efficiently allocate resources to ensure it enjoys future success (Barrow & Barrow & Brown, 2021). The data in the sale forecast is essential as it helps an organization set a benchmark on the future issues that are likely to affect it, and thus, the leaders can make corrections early. The revenue leaders can also use information in the sale forecast to align the sale quotas and revenue expectations of the organization.

Cash Flow Statement for January

French Bakery

January-2022

Assets

Cash	$ 9400
Account Receivable	$55716
Paid Expenses	$ 35620
Inventory	$ 22200
Total Assets	$122936

Liabilities

Current Liabilities	$ 17600
Long Term Liabilities	$36000
Total Liabilities	$53600

Cash flow refers to the amount of money entering and leaving a company over a specific period. In a company, preparing a cash flow is essential because it will ensure the firm meets its existing financial obligations and prepares for the future. However, preparing a cash flow statement is an issue challenging smaller businesses. The cash flow statement complements the balance sheet and the income statement. The three main components of this financial document are; the operative activities, investing, and financial activities. Operative activities include the receipts made from the sales of goods and the offering of services—interest made from payment, the income tax payment, and the amount paid to the suppliers. Amount spent on payment of salaries and wages is also captured in the cash flow. Cash flow can be determined using either direct or indirect methods. The cash flow creates a picture of how a company's operations are running, the sources of money, and how the organization is spending the cash (Barrow & Barrow & Brown, 2021). Creditors can determine how a firm funds its operations and pays its debt from the cash flow. Investors need the cash flow statement because it enables them to make informed decisions on whether to invest in an organization or not.

Profit/Loss Account

French Bakery- January 2022

Particulars	Amount ($)	Amount ($)
Sales	50000
Total Revenue		50000
Expenses
Cost of Product Sold	15000
Rent	6000
Salaries	7000
Utilities	4000
Total Expenses		32000
Net Profit		18000

A profit or Loss account is an ongoing record of the company’s financial situation. Creditors and market analysis use the records to determine a company’s financial position and its potential to grow in the future. A profit/loss account summarizes the revenue, cost, and expenses incurred during a working period (Barrow & Barrow & Brown, 2021). The category that must be captured in a profit/loss account includes; the sales, cost of sales, marketing, advertising, taxes, other expenses, and the net income.

Reference

Barrow, C. & Barrow, P. & Brown, R. (2021). The business plan workbook: a step-by-step guide to creating and developing a successful business, tenth edition.