MNGT2002 Milestone Schedule and Core Financial of GPS Project Assignment Sample

Subject Code : MNGT2002
University : The University of Newcastle My Assignment Services is not sponsored or endorsed by this college or university.
Subject Name : Management

Business Venturing

Milestone Schedule

The major objectives of the organization are as follows:

To achieve maximum sales revenue and thereby raise the profitability of the organization.
To increase the wealth of the shareholders by providing them with attractive returns.
To ensure effective and efficient development of the product.
To increase the market share of the organization in the industry.

Milestone	Start date	End date
Completion of concept and product testing	1-August	17-August
Completion of prototype	18-August	31-August
First financing	1-September	15-September
Completion of initial plant tests	16-September	28-September
Market testing	1-October	5-October
Production start-up	7-October	15-October
Bellwether sale	16-October	25-October
First competitive action	30-October	6-November
First redesign or redirection	10-November	15-November
First significant price change	20-November	30-November

Milestones help in establishing plans into practical terms with deadlines and responsibilities of the management. Milestones are used to facilitate real management as this marks the major events that are going to take place in the organization. Milestone planning help in avoiding expensive anticipating errors and provides logical milestones for evaluating and learning. It helps in replanning the entire structure on the basis of updated information.

The Core Financials

Capital expenditure budget

Capital Expenditure Budget
	2021 (Amounts in $)
Expenditure list	January	February	March	April	May	June	July	August	September	October	November	December	Total	2022
IT and Technology	5000	5100	5202	5306	5412	5520	5631	5743	5858	5975	6095	6217	67060	75000
Showroom maintenance	10000	10200	10404	10612	10824	11041	11262	11487	11717	11951	12190	12434	134121	140000
Expansionary	12700	12954	13213	13477	13747	14022	14302	14588	14880	15178	15481	15791	170334	300000
Goodwill	8000	8160	8323	8490	8659	8833	9009	9189	9373	9561	9752	9947	107297	110000
Intangible assets	4000	4080	4162	4245	4330	4416	4505	4595	4687	4780	4876	4973	53648	50000
Property, plant and equipment	11000	11220	11444	11673	11907	12145	12388	12636	12888	13146	13409	13677	147533	300000
Deferred tax assets	2000	2040	2081	2122	2165	2208	2252	2297	2343	2390	2438	2487	26824	25000
Trade and other receivables	4000	4080	4162	4245	4330	4416	4505	4595	4687	4780	4876	4973	53648	40000
Total	56700	57834	58991	60170	61374	62601	63853	65130	66433	67762	69117	70499	760465	1040000

Budgeted profit and loss statement

Budgeted profit and loss
Particulars	Amount
Revenue	500000
Less: Cost of sales	432000
Gross profit	68000
Operating expenses:
Exceptional administrative expenses	5000
Impairment of intangible assets	1000
Administrative expenses	25000
Depreciation and amortization	7000
Total operating expenses	38000
Operating profit/loss	30000
Finance costs	20000
Finance income	1000
Net finance cost	-19000
Profit/(loss) before taxation	11000
Taxation	3300
Profit/(loss) for financial period	7700

Budgeted cash flows

Budgeted cash flows
Particulars	Amount ($)
Cash flows from operating activities
Net profit	7700
Adjustments for:
Depreciation on property, plant and equipment	4000
Amortization on intangible assets	3000
Impairment of intangible assets	1000
Finance income	-1000
Finance costs	20000
Taxation	-3300
Cash generated from operations	31400

Cash flows from investing activities
Purchase of property, plant and equipment	-32000
Purchase of intangible assets	-4000
Net cash outflow from investing activities	-36000

Cash flows from financing activities
Net proceeds from listed bond issue	20000
Issue of shares	179478
Transaction costs	-700
Net cash outflow from financing activities	198778

Net increase in cash and cash equivalents	194178

Budgeted balance sheet

Budgeted balance sheet
ASSETS	Amount ($)
Non-current assets
Goodwill	107297
Intangible assets	53648
Property, plant and equipment	147533
Deferred tax assets	8000
Trade and other receivables	4000
	320478
Current assets
Inventories	40000
Trade and other receivables	15000
Cash and cash equivalents	45000
	100000
Total assets	420478

LIABILITIES
Current liabilities
Trade and other payables	130000
Current tax liabilities	2000
Derivative financial instruments	25000
Short term loan	4000
	161000
Non-current liabilities
Trade and other payables	30000
Borrowings	20000
	50000
Total liabilities	211000
Net assets	209478

Equity
Share capital	209478
Total equity	209478

Projected returns

Projected returns	Formulas	Ratio
Return on sales	Operating profit/Net sales	0.06
Return on total assets	EBIT/Total assets	0.02616
Return on shareholders' funds	Net income/shareholders' equity	0.03676

Risk profile
Break even analysis	Fixed cost/(Selling price per unit - Variable cost per unit)	50
Gearing ratio	Total debts/total equity	0.09547
Working capital ratio	Current assets/current liabilities	0.62111

Risk Profile

Risk versus return assessment

While undertaking any investment, both risk and return are involved. Various types of risks involve industry-specific risk, market risk, competitive risk, etc. Returns are expressed as income received from trading (Baron et al., 2019). Invested amount of money can bring a high amount of profits only when the investor is ready to accept high chances of losses, according to risk-return trade-off. The company as an investor must take into consideration the risk-return trade-off on every type of investment an across wide base of the portfolio while investing-related decisions.

When the company raises funds by issuing equity, then it must undertake suitable measures to generate a return for the shareholders (Stowell, 2017). Here, the return on equity is 0.03676 which indicates the ratio of net income meant for the shareholders. Return on sales ratio is calculated as 0.06 which shows the proportion of operating profit on net sales made by the firm. Return on total assets indicates the income generated from operations in relation to total assets.

Gearing ratio is 0.09547 which indicates the proportion of debt and equity used by the company. This ratio is quite small as the company has raised a major part of funds by issuing equity and fewer funds by acquiring borrowings.

The current ratio or working capital ratio is quite less which indicates the company’s current assets are not sufficient to pay off its short-term debt obligations.

References for Milestone Schedule and Core Financial of GPS Project

Baron, M., Brogaard, J., Hagströmer, B., & Kirilenko, A. (2019). Risk and return in high-frequency trading. Journal of Financial and Quantitative Analysis, 54(3), 993-1024.

Stowell, D. P. (2017). Investment banks, hedge funds, and private equity. Academic Press.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help