week 14-15

Question 1

Estimates of cash sales, cash expenditures, and other
financial information over a period of time.

Answer 1

Financial projections

Question 2

can help to understand a company’s expected
future growth and profitability.

Answer 2

Financial projections

Question 3

Is the number of products or services a company sells over a specific period of time, such as a month, quarter, or year. It’s a key metric for evaluating a company’s financial performance and growth potential.

Answer 3

SALES VOLUME

Question 4

is calculated by multiplying the number of units sold by the
time period. For example, if a cosmetics brand sells 500 units of mascara in a quarter at a price of P100 per unit, their sales volume for that quarter is 500 units and their total sales are P50,000.

Answer 4

SALES VOLUME

Question 5

To calculate ___________ multiply the number of units sold by the period of time (week, month, year).
The formula looks like this: Number of units sold x period of time = sales volume.

Answer 5

SALES VOLUME

Question 6

is a chart that represents the proportions of parts of a whole in
two different moments. Use this visualization to display changes in
the composition of market shares or demographic data, or to
measure your achievements comparing your targets with your
actual performance.

Answer 6

VALUE PROJECTIONS

Question 7

An estimate of the future ____ of an asset or cash, or the
proportions of parts of a whole at two different points in time.

Answer 7

VALUE PROJECTIONS

Question 8

The amount an asset or cash is expected to be worth at a future time.

For example, the _________ of a car at the end of a lease.

Answer 8

PROJECTED VALUE

Question 9

are based on information that is already known, but because the future is unknown, they should be accompanied by terms that explain how and by what means they are being predicted.

Answer 9

PROJECTED VALUE

Question 10

In business, projections can be used to communicate a company’s growth prospects, vision, and what they hope to achieve.

Transparent and realistic projections can help build trust and credibility with potential investors, partners, lenders, or buyers.

Answer 10

PROJECTED VALUE

Question 11

An income statement, also known as a _______________________

Answer 11

profit-and-loss

Question 12

is a business plan component that shows a company’s
revenues, expenses, and profitability over a period of time. It includes the following information:

Answer 12

INCOME STATEMENT

Question 13

_________: The amount of money a company makes from selling
products or services

Answer 13

Revenue

Question 14

___________: The costs incurred to generate revenue and manage
the business

Answer 14

Expenses

Question 15

______________: The amount of money remaining after expenses are subtracted from revenue

Answer 15

Net income

Question 16

Net sales minus cost of goods sold

Answer 16

Gross profit:

Question 17

___________________: Gross profit minus operating expenses

Answer 17

Operating income

Question 18

________________: Operating income plus non-operating income

Answer 18

Net income

Question 19

__________________ The expenses directly related to producing a
product or service, such as direct labor, materials, freight, storage,
packaging, and factory overhead

Answer 19

Cost of goods sold (COGS):

Question 20

_______________-: The difference between revenue and direct costs

Answer 20

Gross margin

Question 21

______________________: Also known as pre-tax income, this is the final
subtotal before calculating net income

Answer 21

Earnings before tax (EBT)

Question 22

________________: The difference between a company’s total revenues and all
expenses

Answer 22

Net income

Question 23

The ___________________ mechanism is the process of incurring expenses
and securing funding to cover those expenses to launch and
establish a new business.

Answer 23

start-up costs

Question 24

This process typically involves
identifying and budgeting for all necessary expenses and securing
funding to cover those costs through investments or loans.

Answer 24

start-up costs

Question 25

Business __________________ also help entrepreneurs identify potential challenges and risks associated with their business idea and develop a financial plan to manage them.

Answer 25

start-up costs

Question 26

By carefully budgeting and planning for such costs, entrepreneurs can make informed decisions about the feasibility and sustainability of their business idea.

Answer 26

start-up costs

Question 27

Additionally, investors often use average start-up costs for a business to evaluate a business idea’s potential and the entrepreneur’s ability to manage and grow the business.

Answer 27

start-up costs

Question 28

Therefore, a well-planned and well-funded ____________ is a positive indicator of the potential success of a business.

Answer 28

start-up

Question 29

The ______________________ refers to investing in a firm or other business enterprise with the goal to further its business objectives.

Answer 29

total capital investment

Question 30

The ________________________ definition refers to two situations. First, it is about investing in a firm or other business enterprise with the goal to further its business objectives. It also refers to capital assets or fixed assets acquired by a firm.

Answer 30

total capital investment

Question 31

_________________ estimates future sales revenue by analyzing historical sales data and using it to predict future sales patterns. Businesses use sales projections for both short-term and long-term planning.

Answer 31

Sales projection

Question 32

__________________ are a critical part of any business plan. They allow businesses to set realistic goals and track their progress over time. Without accurate sales projections, companies may find themselves under- or over-performing against their targets.

Answer 32

Sales projections

Question 33

On the other hand, if sales are expected to slow down, they may need to cut costs to stay profitable. Making accurate ________________ is an essential skill for anyone leading an organization’s sales management. While there is no guaranteed way to perfectly forecast future sales, careful analysis and planning can help companies make the best estimate possible.

Answer 33

sales projections

Question 34

Anna and Marvin, two passionate mixologists, decided to venture into the beverage industry by launching their own line of cocktails in a bottle. After careful planning and product development, they are ready to forecast their sales for the next three years. Year 1: In the first year of operations, Anna and Marvin aim to establish their brand and gain traction in the market. They plan to produce and sell 200 bottles of cocktails per week, equivalent to 800 bottles per month. With this initial target, they anticipate a steady growth as they introduce their products to local retailers, restaurants, and online platforms. Year 2: Building on the success of their first year, Anna and Marvin are optimistic about scaling up their production and expanding their customer base. They plan to increase their weekly production by 100%, doubling it to 400 bottles per week, or 1600 bottles per month. This expansion allows them to meet growing demand and capitalize on the increasing popularity of their cocktails. Year 3: As they enter their third year in business, Anna and Marvin are focused on sustaining their momentum and solidifying their position in the market. They continue their growth trajectory by doubling their production once again. Now, they aim to produce 800 bottles per week, totaling 3200 bottles per month. With a well- established brand reputation and a loyal customer following, they anticipate continued growth and profitability in the coming years.

Answer 34

SALES PROJECTION

Question 35

Profit per unit formula

Answer 35

Profit per unit = Selling price per unit - Cost price per unit

Question 35

Overall profit formula

Answer 35

= Number of bottles sold * Profit per unit