BTEC level 3 Diploma in Business Unit 5 Business Accountnn Daniil Chernat
D1) You will now make suitable recommendatons to solve the cash fow problems.
In March 2013 SSL had a problem with stock purchase which was too high and higher than sales. The
problem could have been resolved by decreasing the purchases of stock to £50.000, as they have done it
in January 2013.
In December 2013 SSl had a problem with stock purchase which was too high and higher than sales. The
problem could have been resolved by buying more stock in December and this would have helped SSL to
still have more sales in December 2013 and having to pay for less stock in oovember 2013. In December,
I would recommend them to buy more stock in December and from £80.000 I would increase the stock
to £100.000. In addition to that, I would decrease the stock purchases in oovember 2013 from £100.000
to £70.000.
In January 2013 SSL had a problem with a bank loan as they took out £50.000 to buy a van for £50.000,
which means they had to pay £1.000 per month and loan repayments with interest. There are three
possible solutions that SSL should have used.
a) To buy a new van without a bank loan later in a year.
b) Buy a second hand van
c) Lease a van
In January when SSL bought their van, they took out a bank loan with a monthly interest in order to buy
a brand new van for £50.000. The frst solution that SSL should have used is they should have moved the
date in order to buy a van in diferent month. For example, in oovember where the cash fow is beeer
and sales are high. In this month SSL has been able to aford a van without getng a loan and then SSL
wouldn’t have to pay an interest rate. However, the disadvantage in this process would be that SSL’s
sales might be efected, as they would not have a van for nearly a whole year.
The second possible solution is to buy a second hand van which will be a lot cheaper and this can help
SSL to improve their cash fow. However, there are might be some problems with van and SSL will have
to spent some money on replacement of some details which will cost some money. On the other hand,
the price of buying a second hand van and fxing the van will be still cheaper than buying a van with the
loan and paying monthly interest. I have managed to fnd a second hand van which will cost SSL £11.991
(heps://www.gumtree.com/p/vans/mercedesbbenz-bsprinterb313cdibmwbbhighbroofb130psbdieselb
manualbwhiteb2013b/1170758100) .
This process can save SSl £38009,
however there are still some risks that
van might have some problems with
engine and something’s might need a
replacement.
D1) You will now make suitable recommendatons to solve the cash fow problems.
In March 2013 SSL had a problem with stock purchase which was too high and higher than sales. The
problem could have been resolved by decreasing the purchases of stock to £50.000, as they have done it
in January 2013.
In December 2013 SSl had a problem with stock purchase which was too high and higher than sales. The
problem could have been resolved by buying more stock in December and this would have helped SSL to
still have more sales in December 2013 and having to pay for less stock in oovember 2013. In December,
I would recommend them to buy more stock in December and from £80.000 I would increase the stock
to £100.000. In addition to that, I would decrease the stock purchases in oovember 2013 from £100.000
to £70.000.
In January 2013 SSL had a problem with a bank loan as they took out £50.000 to buy a van for £50.000,
which means they had to pay £1.000 per month and loan repayments with interest. There are three
possible solutions that SSL should have used.
a) To buy a new van without a bank loan later in a year.
b) Buy a second hand van
c) Lease a van
In January when SSL bought their van, they took out a bank loan with a monthly interest in order to buy
a brand new van for £50.000. The frst solution that SSL should have used is they should have moved the
date in order to buy a van in diferent month. For example, in oovember where the cash fow is beeer
and sales are high. In this month SSL has been able to aford a van without getng a loan and then SSL
wouldn’t have to pay an interest rate. However, the disadvantage in this process would be that SSL’s
sales might be efected, as they would not have a van for nearly a whole year.
The second possible solution is to buy a second hand van which will be a lot cheaper and this can help
SSL to improve their cash fow. However, there are might be some problems with van and SSL will have
to spent some money on replacement of some details which will cost some money. On the other hand,
the price of buying a second hand van and fxing the van will be still cheaper than buying a van with the
loan and paying monthly interest. I have managed to fnd a second hand van which will cost SSL £11.991
(heps://www.gumtree.com/p/vans/mercedesbbenz-bsprinterb313cdibmwbbhighbroofb130psbdieselb
manualbwhiteb2013b/1170758100) .
This process can save SSl £38009,
however there are still some risks that
van might have some problems with
engine and something’s might need a
replacement.
