Individual Case Study Assignment 1: Cash Flow Forecasts And Projected Financial Statements

Individual Case Study Assignment 1NameTutor’s Name20/06/2017Executive SummaryThis report is a commentary on the financial positon and business prospects of Fashion Clothing financial analysis. This report is based on an analysis of financial statements to bring out a better understanding of the profitability, financial position and cash flow of the business.The financial statements reveal that the foundations of the business in respect of finances and profitability are sound. The business has a 50% return on equity over the six months of operation, this is a respectable rate of return and indicates very good prospects for the business going into the future. However, the business needs to have a more robust cash flow in order to sustain profitability. Since the business is profitable,it is suggested that the business can benefit from short-term cash flow support facility from a commercial institution.Cash flow projections clearly indicate the need for an overdraft facility. The implication of this is that the business will have to incur interest expense to maintain this facility.Table of Contents TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc479551961 \h 11. Introduction