Supply Chain Task 1

In: Business and Management

Submitted By andy1072
Words 1229
Pages 5
November 10, 2013 JCT Task 1
B1
Pro-forma statements is a financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows. I did not use pro-forma statements in the beginning and it became nearly impossible to calculate my future expenses. If I had used the pro-forma statement, I would have been much more successful with the latter outcome by having funds available and less overhead.
A budget statement consists of an operating statement, including other economic flows, a balance sheet, and a cash flow statement, which I did not use until I realized that my company was in trouble after the third quarter. If I would have used my budget statement appropriately in the beginning, the company would have seen proper growth and capital gains. The negative outcome of not using budget statements was clear throughout the last three quarters.
My negative cash flow became excessive in quarter two due to over production of my products. Therefore in quarter three I had extremely high inventory holding cost and excess capacity costs. I tried to adjust in quarter four for the price per unit to compensate for my negative cash flow but I was already too far in the negative. Now that I have learned how the pro-forma statement works, I would have been able to take a better approach on how to save and invest money for the long term of the business goals. I would have been able to predict a better outcome even though pro-forma statements are only assumptions of what can be predicted based on events and outcomes. Working within the budget statements, again, I was very aggressive and tried to use the available funds provided. However, without looking…...

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