i have attached the document to be completed please reply with qualifications
profit loss accounts
Analyse the business plan in terms of cost; volume; profit and in relation to its location and the demographics of the area.
CASE STUDY-Ned Kelly Ned Kelly has decided to start a taxi business in his hometown of Broadstairs . An accountant advises that he needs to budget the first year’s profit or loss, and also the cash flow from trading (the capital budget is being calculated separately) so that he can calculate how much overdraft from the bank will be needed. Ned currently plans to have three taxis and nine drivers, plus £5,000 in the bank on 1 April 2013. Each driver can work five eight-hour shifts per week, and will take four weeks holiday per year including public holidays. At least one taxi will be available for hire 24 hours a day, 365 days per year. No relief drivers will be used and no overtime will be paid. The accountant suggests that each taxi will be used at 60% capacity, spread evenly over the year. The average receipts per taxi hour are expected to be £25 for the first three months, rising to £30 thereafter. It is envisaged that 20% of passengers will pay by credit card, payment in respect of which will be made in the following month, and 30% will be account customers, payment in respect of which will be made in the next but one month. The remainder will pay by cash. The cost of diesel will be 15% of revenue, paid for in the month following the expenditure. Maintenance costs per taxi will be £120 per month, payable one month in arrears, and annual road tax and licence fees per taxi will be £600, payable at the beginning of the first month’s trading. Monthly depreciation on fixed assets will be £1,000. Ned will manage the office, and he and four office staff will take bookings and direct drivers. Drivers will each be paid £24,000 gross pa; the four office staff will be paid £16,000 gross pa each. Social security costs and benefits will add another 10% to each month’s salary bill. All staff costs will be paid in arrears on a monthly basis. Utilities (water, gas and electricity) are expected to cost £1,500 a quarter, payable by direct debit in the first week of…