Chapter Name: Develop the small retail business financials
Description:This chapter addresses the creation of financial statements, including income statements, balance sheets, and cash flow statements.
Purpuse:To teach businesses how to prepare and understand financial statements that reflect the health of the business.
Rational:Financial statements are vital for monitoring business performance, making strategic decisions, and attracting investors or securing loans.
Chapter Assessment
Scope of Practical Skill
Key Requirement 1: Calculate the break-even point of the business
Calculate the sales needed to cover all costs.
Key Requirement 2: Draw up a Cash flow statement
Summarize all cash inflows and outflows for a period.
Key Requirement 3: Draw up an Income statement
Report income, costs, and profit/loss over a period.
Key Requirement 4: Develop a Balance sheet
Show business financial position using assets, liabilities, and equity.
Assessment Questions
Assessment 1 : Calculations are performed to determine the break-even point of the business
Learner must calculate at what point revenue covers total costs.
Assessment 2 : A Cash flow statement is drawn
Learner must present cash inflows and outflows over a period.
Assessment 3 : An Income statement is drawn
Learner must compile a profit and loss statement.
Assessment 4 : A Balance sheet is developed
Learner must summarize assets, liabilities, and equity.