Report


a) It is quite understandable why business organizations need spreadsheets. Obviously spreadsheets are very important and useful to business because they help them during the financial period to predict and budget their financial transactions for each months. Every business organization needs these spreadsheets to see their budget and balances for each month and predict their transactions related with their needs for the next month so and avoiding a probable deficiency.


b) By perusing the spreadsheet of Ms Carmen San Diegoís financial activities we deduce that Carmen is in debt from November and on with a break of this deficiency on December when Carmen had been given an allowance by her parents. From December and on Ms Carmen has a deficit and that continuous until the end of August. Obviously, Carmen did not handle her money in a right way. First of all she pays petrol expenses for 51 GBP and at the same time she pays Travel expenses for 94.2 GBP per month. However we deduce that Carmen spends 145.2 GBP monthly for transportation which is big amount. I believe that she does not need to use the car since she can use the public transports as we it is known that the car expenses is much more than the public transports because as we know to use a car you need to pay for insurance or circulation fees. Carmenís car expenses are 125 GBP per month however the real amount that Carmen spends for transportation is 270.2 GBP per month (51 GBP for Petrol, 94.4 for public Carmen had been given an allowance by her parents. From December and on Ms Carmen has a deficit and that continuous until the end of August. Obviously, Carmen did not handle her money in a right way. First of all she pays petrol expenses for 51 GBP and at the same time she pays Travel expenses for 94.2 GBP per month. However we deduce that Carmen spends 145.2 GBP monthly for transportation which is big amount. I believe that she does not need to use the car since she can use the public transports as we it is known that the car expenses is much more than the public transports because as we know to use a car you need to pay for insurance or circulation fees. Carmenís car expenses are 125 GBP per month however the real amount that Carmen spends for transportation is 270.2 GBP per month (51 GBP for Petrol, 94.4 for public transports and 125 GBP for car expenses). Therefore Ms Carmen needs to think and choose one kind of transportation and it is better for her to choose the public transports as her salary does not allow her to spend so much money.


It is obvious why Ms Carmen starts having a deficit Bank balance from the November and on with an exception in December when Ms Carmen took the allowance. The reason is that on November Carmenís Utilities expenses, Entertainment expenses and food expenses start increasing continuously until mainly January when the entertainment expenses level off and on March when the Utilities expenses stay constant. Food expenses also increase by 2% until February and then they also stay constant but Food is necessary for Carmen. I believe that, if Ms Carmen wants to avoid the deficiency she must be careful with her expenditures. Therefore, since her salary does not allow her to spend money for the indispensable expenses she has to reduce the entertainment expenses and she also has to choose between the transports.


The Mortgage repayment increases on December by 0.5%. However, Ms Carmen must start thinking more seriously about her expenditures but more over needs to start thinking how she can reduce the not indispensable expenses. The big deficiency starts from January when Ms Carmen was on holidays for two weeks and spent 850 GBP. Consequently Carmenís bank balance is deficit until the August because her salary and also the allowance given from their parents do not allow her to cover this deficiency so that is why the bank balance is deficit continuously and also with an increasing rate.


Finally, to sum up, Ms Carmen must limit her entertainment expenses her transportation expenses by choosing which way needs