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Essay / Research Paper Abstract
This 7 page paper demonstrates the way that spreadsheets and graphs may be utilized effectively to make a business decision and support a case for investment. The way spreadsheets may be used to generate information and the benefit of showing this is graphs is demonstrated by using a fictitious example of a restaurant planning an extension. The use of profit forecasts, revenue use and break even points are all demonstrated. The bibliography cites 5 sources.
Page Count:
7 pages (~225 words per page)
File: TS14_TEspreadg.doc
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Unformatted sample text from the term paper:
an opportunity for themselves, but also in assessing the way that the opportunity may be presented. The use of data to create a graphical representation can be a great aid
to the decision making process, especially where there are spreadsheets involved and facts and figures do not jump out of the page. The potential decision may be whether or
not to invest in a business or an extension to a business. The initial stages of the assessment will involve an assessment of costs and revenues to determine the potential
cash flows. It is here that the use spreadsheet can be used. Here we will use the example of a potential expansion to a restaurant, assessing the cost and the
revenues that will be generated. We will assume that the capital cost will be $15,000. In order to assess the return the additional level of business and operating costs associated
with the business need to be assessed. For this we can look at a monthly forecast for the additional revenue and costs. The first year may show the following.
Jan Feb Mar Apr May Jun Additional revenue 1,000 1,200 1,400 1,600 2,000 2,400 Cost food 300 360 420 480 600 720 Cost of labor 350 420
490 560 700 840 Overheads 150 180 210 240 300 360 Total costs 800 960 1120 1280 1600 1920 Operating profit 200 240 280 320 400 480 Jul
Aug Sept Oct Nov Dec Total Additional revenue 2,400 2,200 2,000 1,500 1,500 2,000 21,200 Cost food 720 660 600 450 450 600 6360 Cost of labor 840 770
700 525 525 700 7420 Overheads 360 330 300 225 225 300 3180 Total costs 1920 1760 1600 1200 1200 1600 16960 Operating profit 480 440 400 300 300 400
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