Action Required: Completion of Excel Sheets and PPT for Learning Aim C Report Provided below.

As part of the next steps for the Learning Aim C report, I need you to complete the Excel sheet with the following four sections: Make sure you using the same business for all the statements and analysis.

1. Break Even Analysis
2. Cash Flow Forecast
3. Statement of Financial Performance
4. Statement of Financial Position

Please ensure that the numbers in these sections correlate correctly across the different statements.

Once the Excel sheet is complete, I also need you to finish the PowerPoint presentation I've provided, which includes the analysis for these financial statements.

Once both the Excel and PPT are finalized, please compile everything into the Learning Aim C report and send it over for review.

Report: Learning Aim C C1: Statement of Comprehensive Income (SOCI) Business Name: Fit Fresh Juices Sole Proprictor: Asma Taher 1. What is the Statement of Comprehensive Income (SOCI)? I began by defining what the Statement of Comprehensive Income is. focusing on its structure and purpose in a business context. | explained its importance in evaluating a company's financial performance over a specific period and why it is essential for stakeholders. My explanation emphasized the connection between operational results and the broader financial position. ensuring the response was clear and comprehensive. The Statement of Comprehensive Income (SOCI) is a financial statement that summarizes a business's income and expenses over a specific period, typically a fiscal year. It highlights the financial performance by showing key figures like revenue, gross profit. operating profit. and net profit. This statement provides insights into whether the business is making a profit or incurring a loss, helping owners make informed financial decisions. Businesses need to prepare the SOCI at the end of the vear to valume profitability, track revenue growth, and identify cost inefficiencies. It also aids in meeting tax obligations and assessing the business's financial health for potential investors or lenders. 2. Why does Fit Fresh Juices need to create a SOCI? I applied the concept of SOCI to the fictitious business, Fit Fresh Juices, to provide context and practical application. I discussed the purpose of creating a SOCI from the perspective of a sole proprietor, highlighting its role in assessing performance, planning for the tuture, and meeting legal or financial obligations. This approach linked the theoretical concept to real-world business needs, demonstrating its utility. Fit Fresh Juices creates the SOCI to: Assess Performance: Track whether the business achieved its financial eoals and analyze how well it converted revenue into profit. 4. Measuring Profitability 1 caleulated key financial ratios (gross profit margin, net profit margin) based on the provided SOCI data. 1 identified trends by comparing 2023 to 2024, explained reasons for increases or decreases in cach ratio, and recommended practical solutions to improve performance. This approach blended quantitative analysis with actionable strategies, making the response both analytical and practical. Recommendation Ratio 2023 2024 Increase/Decrease Gross Profit Margin 60% 55% Decrease (-$%5) Neszotiale better rates with suppliers or adjust pricing fo improve margius. Mark-Up 150% 140% Decrease (-10%) Evaluate production costs and improve operational efficiency ta reduce COGS. Net Profit Margin 15% 10% Decrease (-5%3) Reduce operating expenses such as utilities, marketing, or wages without compromising product quality, ROCE 20% 18% * Decrease (-2%) Enhance profitability through better cost control or by reinvesting profits into high- perfonming areas. D3: Justify Recommendations for Improvements to Business Performance Reviewing Profitability I focused on detailed explanations of how profitability, revenue growth, cost management, and external factors impact business performance. I used the ratios and financial trends identified earlier to propose targeted recommendations. Each recommendation was justified with logical reasoning, ensuring the solutions were feasible and relevant to a sole proprietor business. | structured my response into clear sections, making it easy to follow and align with the task objectives. A detailed analysis of profitability ratios reveals that a decline in net profit margin suggests increasing operational expenses. /Addressing this issue involves identifying unnecessary costs, such as excessive administrative overhead, and implementing measures to streamline operations. Similarly, the drop in gross profit margin points to rising production costs, which could be mitigated by negotiating better supplier terms or enhancing production efficiency. These adjustments will enable the business to maintain competitive pricing while improving overall profitability. Revenue Growth The analysis of sales trends highlights the importance of sustaining consistent revenue growth to support the business's financial stability. If revenue stagnates, diversifying product offerings. such as introducing seasonal items or premium options, can attract new customers and boost sales. Strengthening customer loyalty through targeted marketing and loyalty programs ensures repeat business and fosters a stable revenue base. These strategies not only increase sales but also enhance brand reputation and market position. Cost Management Effective cost management is critical for improving business performance, particularly in identifying and controlling fixed and variable costs. High fixed costs, such as rent or utilities, can be reduced by renegotiating contraicts or finding alternative suppliers. Variable costs, such as inventory or production expenses, can be optimized by leveraging bulk purchasing or reducing waste through better planning. Implementing these measures helps the business maximize efficiency and allocate resources more effectively. External Factors and Risks External market conditions, such as economic fluctuations or regulatory changes. can significantly impact business profitability. Diversifying the customer base and product lines minimizes the risks associated with market dependency or seasonality. Seasonal trends also demand proactive planning, such as stocking appropriate inventory during peak periods or running targeted promotions to capitalize on demand. By anticipating and mitigating these risks, the business ensures long-term sustainability and resilience in a dynamic market environment. Budgeting and Foreeasting: Use the data to plan for the upcoming year by identifying areas of improvement and setting realistic goals. Stakeholder Transparency: Demonstrate financial performance to lenders if seeking a loan or investors looking to partner. Compliance: Fulfill tax filing and financial reporting obligations. The SOCT allows Anna Taylor to understand the profitability of her juice business and decide on strategies to improve margins, control costs, and optimize pricing. 3. Print Screen of Excel SOCI Diagram [ created an example SOCI in Excel, incorporating both 2023 and 2024 data for revenue, costs, and profit. along with other comprehensive income items like unrealized gains. This data was then saved and formatted for easy screenshot and inclusion in the report. LIR B C Category 2023 ($) 2024 (3) Revenue 100000 120000 Cost of Goods Sold (COGS) ' 40000 54000 Gross Profit 60000 66000 Operating Expenses 45000 60000 Operating Profit 15000 6000 7 |Other Income 2000 1500 8 Net Profit 17000 7500 9 Unrealized Gains on Investments 3000 4000 10 Foreign Currency Translation Adjustments -1000 -2000 11 Total Comprehensive Income 19000 9500