Financial Analysis Project-Billy and Fiona’s Business Ventures

Topic 

Financial Analysis Project-Billy and Fiona’s Business Ventures

Instructions 

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The cash flow analysis revealed that Billy’s café had a cash surplus of £ 1,780 as compared to £29,416 for Fiona’s business. Therefore, the clothing business has a superior capacity than the café in generating cash from its operations. Regarding income statement analysis, Billy’s café had a higher gross profit margin than Fiona’s fashion shop, but its net profit margin was lower. Also, Billy’s café had a lower cost of sales ratio, labor-to-revenue ratio, and marketing expenses-to-revenue ratio than Fiona’s fashion shop, which indicated that it was more efficient in managing the different costs in the generation of sales.

Word Count: 3000