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    Hi Guys,

    New to the forum. I've got my first college interview next week and I'm quite nervous about it. I've done accounting and finance in school for the last 3 years and I'm really wanting to go and get a degree in accounting.

    After being called upon an interview for the college, I've been asked to complete this task before I go for the interview, I'm quite nervous about it since I'm not sure if my answers are right for it.

    http://www.west-lothian.ac.uk/_uploa...iew%20Task.pdf

    Could anybody guide me with this

    The 3 suggesting that I've suggested is-

    -Have more greenhouses if they have space for more since that will help with the cash coming it

    - Since they only supply 50% of their plants, they should look into a way of getting that number up so they're saving more money if they aren't having to buy the plants in

    - About the wages of the staff, maybe change the staff from full time staffs to part time staffs, that would surely reduce the cost of wages?

    If anybody can give me some advice on the case study, that'd be great.

    Thanks
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    (Original post by Jason.lynn)
    Hi Guys,

    New to the forum. I've got my first college interview next week and I'm quite nervous about it. I've done accounting and finance in school for the last 3 years and I'm really wanting to go and get a degree in accounting.

    After being called upon an interview for the college, I've been asked to complete this task before I go for the interview, I'm quite nervous about it since I'm not sure if my answers are right for it.

    http://www.west-lothian.ac.uk/_uploa...iew%20Task.pdf

    Could anybody guide me with this

    The 3 suggesting that I've suggested is-

    -Have more greenhouses if they have space for more since that will help with the cash coming it

    - Since they only supply 50% of their plants, they should look into a way of getting that number up so they're saving more money if they aren't having to buy the plants in

    - About the wages of the staff, maybe change the staff from full time staffs to part time staffs, that would surely reduce the cost of wages?

    If anybody can give me some advice on the case study, that'd be great.

    Thanks
    Major things to note is that the opening cash is £100 and a year later the balance is £6,208 - this business is hardly making any money which is hugely risky. At one point the negative cash is around £60k (it may be worse depending on cash timings during the month). the business cant afford to pay interest on a bank loan - and would not be a good risk for a bank.

    Negative cashflows occur in winter months when he doesn't have income but pays wages. Possible suggestions:

    - pay staff for 8 months of the year to cut the costs in winter. May not be straightforward as the question notes that its not easy to find experienced gardeners. On the other hand no-one else employs them in winter!

    - He pays for seeds and compost in Jan and Feb - presumably to be used in spring when the income starts again. He could ask the clients to pay for their materials directly, or to pay him when he buys the goods.

    - if there is spare space can that be used to generate additional income or offset costs?
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    He needs to do a cost analysis re wages, on paper the seeds for 50% cost £41k with bought in other 50% costing £170k, but we do not know if extra staffing is needed if he were to grow more plants etc himself or whether existing staff could cope, key is what staff cost relates to the 50% growth of plants etc and what relates to say going out to customers, we are not told so a wage split re this would assist.

    Some analysis re which costs are variable and which fixed would also assist.

    Given issues with cashflow he needs to calculate all the variables to present a business plan that demonstrates affordability, he cannot as earlier post said, sell easily on past performance so he needs to show a bank/lender/investor what the business can do if changed- cost of greenhouses and life expectancy re same will also need to be ascertained re such an exercise.

    p.s. You could also (if you like puns) suggest he seeks SEIS support

    http://www.seis.co.uk/

    Edit- take care with job cutting in winter months, the timing pattern re seed purchases suggests staff may be doing some of the growing in these months so maybe they are needed all year round- the point of them being difficult to find I think is a pointer in the question not to over labour that angle.
 
 
 
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