Making financial decision based on financial decision Essay

Making financial decision based on financial decision - Essay Example Cash budget would allow the owner to analyse how much the company is earning and the investment and cash disbursement for the project. Cash disbursement is the outflows of cash. Cash receipts are the inflows of cash. The first investment opportunity that the company has is Quad Bikes. The ticket price for Quad Bikes has already been estimated by the owners and it is equal to $15. The cash budget for Quad Bikes showing the cash recipients and cash disbursement is as follows: The ticket price for Paint Ball has been estimated by the management of Hall Hill Farm and the price is expected to be $13. Using this price and other costs that have been estimated, the cash budget for the company for Paint Ball would be: The other major project and investment opportunity that the Farm has is to invest in Fish Hatchery which the management has been planning for some time. The price for fish hatchery has not been estimated by the management, however to prepare a cash budget the price is estimated to be $12. Using the price $12 for each of the visitor for fish hatchery, the cash budget would be: At the moment, the cash position of the Hall Hill Farm is unfavourable. Therefore it is important for the farm to analyse the loopholes in the cost structure and come up with strategies that could improve the current position. After analysing the cash budget of the company, it has been analysed that most of the costs of the company is the fixed cost and these costs are to be paid regardless of the earnings of the company. Therefore it is important for firm to expand its services and facilities so that more visitors are attracted and the revenue can be increased. One of the recommendations to improve the current cash position of the farm is to rent retailers outlets and shops at the farm. This would allow the farm to improve its revenues, as the farm has substantial space vacant. Besides allowing