The Cash Flow Analysis Finance Essay - Free Essay Example

Sample details Pages: 13 Words: 3783 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? A cash flow statement is a statement which explains the various sources from which the funds are raised and the uses to which these funds are put. Complementing the balance sheet and income statement, the cash flow statement (CFS), a mandatory part of a companys financial reports since 1987, records the amounts of cash and cash equivalents entering and leaving a company. The CFS allows investors to understand how a companys operations are running, where its money is coming from, and how it is being spent. Don’t waste time! Our writers will create an original "The Cash Flow Analysis Finance Essay" essay for you Create order Chapter 2.Structure of Cash Flow Statement The cash flow statement is distinct from the income statement and balance sheet because it does not include the amount of future incoming and outgoing cash that has been recorded on credit. Therefore, cash is not the same as net income, which, on the income statement and balance sheet, includes cash sales and sales made on credit. Cash flow is determined by looking at three components by which cash enters and leaves a company: core operations, investing and financing. Operations Measuring the cash inflows and outflows caused by core business operations, the operations component of cash flow reflects how much cash is generated from a companys products or services. Generally, changes made in cash, accounts receivable, depreciation, inventory and accounts payable are reflected in cash from operations. Investing Changes in equipment, assets or investments relate to cash from investing. Usually cash changes from investing are a cash out item, because cash is used to buy new equipment, buildings or short-term assets such as marketable securities. However, when a company divests of an asset, the transaction is considered cash in for calculating cash from investing. Financing Changes in debt, loans or dividends are accounted for in cash from financing. Changes in cash from financing are cash in when capital is raised, and theyre cash out when dividends are paid. Thus, if a company issues a bond to the public, the company receives cash financing; however, when interest is paid to bondholders, the company is reducing its cash. Chapter 3.Cash flow analysis -An Introduction Cash flow analysis is the study of the cycle of your business cash inflows and outflows, with the purpose of maintaining an adequate cash flow for business, and to provide the basis for cash flow management. Cash flow analysis involves examining the components of business that affect cash flow, such as accounts receivable, inventory, accounts payable, and credit terms. By performing a cash flow analysis on these separate components, one is able to more easily identify cash flow problems and find ways to improve your cash flow. When planning the short- or long-term funding requirements of a business, it is more important to forecast the likely cash requirements than to project profitability. Whilst profit, the difference between sales and costs within a specified period, is a vital indicator of the performance of a business, the generation of a profit does not necessarily guarantee its development, or even the survival. Normally, the main sources of cash inflows to a busine ss are receipts from sales, increases in bank loans, proceeds of share issues and asset disposals, and other income such as interest earned. Cash outflows include payments to suppliers and staff, capital and interest repayments for loans, dividends, taxation and capital expenditure, loans given.etc. Net cash flow is the difference between the inflows and outflows within a given period. A projected cumulative positive net cash flow over several periods highlights the capacity of a business to generate surplus cash and, conversely, a cumulative negative cash flow indicates the amount of additional cash required to sustain the business. Cash flow planning entails forecasting and tabulating all significant cash inflows relating to sales, new loans, interest received etc. and then analyzing in detail the timing of expected payments relating to suppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, interest payments etc.. When this net cash flow is a dded to or subtracted from opening bank balances, any likely short-term bank funding requirements can be ascertained. Chapter 4.Objectives of Cash Flow Analysis Optimum Utilization of operating cash Implementation of a sound cash flow analysis and management is based on rapid generation, efficient utilisation and effective conversion of its cash resources. Cash flow is a circle. The quantum and the speed of the flow can be regulated through prudent financial planning facilitating the running of business with the optimum cash balance. This can be achieved by making a proper analysis of operative cash cycle along with efficient management of working capital. Cash forecasting Cash forecasting is backbone of cash planning. It forewarns a business regarding expected cash problems, which it may encounter, thus assisting it to regulate further cash flow management. Lack of planning results in spasmodic cash flows. For any organisation, cash is the lifeblood that keeps it the business going .That is why, Cash Flow Analysis and its management has been gaining importance with organisations that view the services as a crucial part of their corporate strategies. Managing the cost of cash There is always an opportunity cost of maintaining excess cash balance.ie. if the firm is maintaining excess cash the it is missing the opportunities of investing these funds in a profitable manner. Similarly if the firm is facing shortage of cash, then it may be required to arrange funds on an emergency basis to appropriate any imbalances in the cash flow. Therefore, cash flow analysis help in determining the appropriate cost of raising cash and the effective deployment of funds. Chapter 5.Uses of Cash Flow Analysis Cash flow analysis is used to evaluate the liquidity of a company, to find out ratios like the net present value and the internal rate of return, to act as a validating input for net income created by accrual accounting methods. A company can use a cash flow statement to predict future cash flow, which helps with matters in budgeting. For investors, the cash flow reflects a companys financial health: basically, the more cash available for business operations, the better. However, this is not a hard and fast rule. Sometimes a negative cash flow results from a companys growth strategy in the form of expanding its operations. By adjusting earnings, revenues, assets and liabilities, the investor can get a very clear picture of what some people consider the most important aspect of a company: how much cash it generates and, particularly, how much of that cash stems from core operations. Chapter 6.Process of Cash Flow Analysis I am working as a summer intern in the finance department of Motilal Oswal Securities Ltd. I am trained for managing the cash flow statement on a daily basis wherein the inflow and outflow of cash was managed and monitored. The different sources of funds with the respective uses are mentioned in brief. The process of cash flow analysis is described below. Initially we obtain the funds position by identification of sources of cash (funds) as follows: Issue of Commercial papers and Non-Convertible debentures Motilal Oswal Financial Services (MOFSL), the parent company as well as Motilal Oswal Securities Ltd, the broking arm, issue Commercial Papers and Non Convertible Debentures during appropriate market timings. These securities assist in the arrangement of funds required for funding the capital and revenue expenditure, working capital requirements and supplementing the growth operations of the company. The process of issuance and the corresponding co-ordination with NSDL , IPA ( Issuing and paying Agent), banks and subscribers is looked after by the respective department and the information of the funds availed is known and communicated while preparing the cash flow statement. We, thus, include the amount as an inflow of funds. Balances in Client Settlement accounts and own accounts with the banks, Fixed Deposits, Loan against shares, ODs, Bank Guarantees, Short Term loans The company maintains different kinds of accounts for different segments like NSE Cash segment, Own and Client Settlement Account and NCDEX Settlement Account for Commodities, NSE Futures and Options Client and Settlement accounts, BSE Client Account and settlement with different banks. These accounts facilitate effective coordination of funds obtained from the clients from the corresponding exchange as well as the companys own funds traded over the exchange. The firms own funds as well as the clients funds are available for optimum utilization at the consent of the client. Thereby these funds are reflected as an inflow in the cash flow statement. Loan facilities are provided by the banks for adequate working capital requirements especially during immediate need of funds when during the days of high market trading considerable requirement of margins in the form of cash needs to be parked in the exchanges. The concept of margins is explained further. Thereby funds available by th ese means are employed for further usage. Banks also provide non fund based facilities in the form of Bank Guarantees: A bank guarantee is an irrevocable commitment by the issuing bank to make a payment, at the request of its client, to the beneficiary specified in the bank guarantee, subject to the beneficiary filing a request with the bank to that end, and the fulfilment of the terms and conditions of such bank guarantee (conditional bank guarantee); before the expiry date of the guarantee and up to the amount specified therein. By issuing an unconditional bank guarantee, a new legal relationship is established, which is independent from the underlying transaction, whereby the issuing banks payment obligation arises subject to the beneficiary requesting such payment, irrespectively of any disagreements the parties may have regarding the fulfilment of the underlying transaction; i.e. the payment obligation arises at the time of the first call and without the need to assess the n ature of the legal relationship. For availing bank guarantee, the banks require authorised letters stamped and delivered with the necessary certificates of creditability as a part of their documentation formalities. Usually the amount of Bank guarantee (BG) is availed against different collaterals like corporate guarantee and /or personal guarantees provided by the promoters to the extent of certain percentage and the remaining in the form of fixed deposits placed with bank, shares pledged of the value after haircut of 50% .Different banks have different specifications. There exists a BG commission for usage of the bank guarantee around 1.5-5% of the amount availed as BG as against the creditability of the company in the industry .BG commission is charged upfront with the issuance, and the charge is amortised over the period of the BG. Also facility of Loan against shares (LAS) is available where loans can be availed against the pledged value of the shares owned by the firm . Overdrafts (OD) are available for working capital requirements and are charged for the period of use of OD amount. They are also availed against fixed deposits placed by the bank and any shares pledged with the bank for the same. Similarly Short Term Loan facility is provided against the collateral of FDs, Shares, and Corporate Guarantee .They are majorly used for furnishing the margin requirements of the exchange. The CASH FLOW STATEMENT also shows the position of the bank accounts with the varied details discussed above .The picture below can give a fair idea about the daily status of funds with the banks. It shows the position of funds with bank on a particular day. It shows the funds in the different accounts along with the interbank and inter account transfers in the form of RTGS, investments and redemptions. The funds obtained or utilised by way of DVP trades, CP/NCD issuance, FDR placement and high value clearing are specified in the bank position statement. Also t he exchange payin /payout for client settlements and collections obtained from the client accounts are shown; thereby the net position of the bank on a daily basis is ascertained. Client funds of Cash, F O and settlement figures are bifurcated to give the exact position of the funds that are held on behalf of clients and the own funds ,that can be further utilised for revenue generation. Funds employed in the form of margins in the exchange in the respective segment are also shown. Similarly, positions for other banks are also prepared and mailed to the banks on a daily basis. Interbank funds transfer As mentioned earlier, the company has various accounts with different banks for different purpose. As and when the fund requirement arises from one account to another or from one bank account to fund another bank account during the business conducted in the day, the corresponding RTGS( Real Time Gross Settlement ) is undertaken and request are processed through faxing of letters containing the respective instructions. Some Banks also provide the facility of auto sweep wherein the funds are transferred into accounts where there is a shortfall from accounts having surplus funds. This ensures adequate funds for immediate deployment. Money payout of funds invested in NSE and BSE: Capital segment and Futures and Options segment The companys own funds as well as those of the clients, when traded over the exchange into buying or selling of shares and other securities result in money payouts/payins and accordingly the funds available with the company increases or decreases. Particular files of communication of the same are updated from the exchanges on daily basis which assist in giving a true picture of the funds received or to be paid. They are thus updated in the cash flow statement. The settlement of Equities as prescribed by the exchange is on T+2 basis and Futures and Options on T+1 basis. Thereby the next days position of settlement with the clients and the exchanges is shown in the cash flow so as to ascertain the requirements of funds for the coming day .Accordingly the cash provisions can be planned out and money can be arranged on time. It is known as the Provision Payin/Payout for coming settlement day (Ledger Bal) Day after tomorrow and these figures are obtained from the back office systems . They are thus updated in the cash flow statement. Margin releases from the exchanges As a stock broking firm, Motilal Oswal Securities have to arrange for appropriate margins in the exchanges for the dealing of its clients in different segments like equities, derivatives and commodities regularly. These margins can be in the form of Bank Guarantee, Fixed Deposits, Cash, Shares and Mutual Funds pledged with the exchange up to a certain proportion ( limit given by the exchange to any stock broking house).They act as a collateral in the event of any default of the payin of the companys clients or the company itself as against the volume of trade conducted over the exchange. The CASH FLOW STATEMENT includes the average margins parked with the respective exchanges and the corresponding bifurcation of the margins in the form of Bank Guarantees, FDRs and cash. It also depicts the proportion of FDRs (Fixed Deposit Receipts) and shares pledged against the bank guarantees in the different banks. This is reflected in the pictures below. It helps in ascertaining the positio n of the application of the funds and helps in analysing the leverage obtained by way of borrowed funds. As the funds are released from the exchanges, they get available for further use the next day and can be invested or deployed appropriately. The following illustration gives a fair view of the margin statement. The margin report is updated on a daily basis by the concerned department and thus, the margin provisions and releases are updated in the cash flow statement. It gives a fair idea of the percent of total collateral parked with the exchange on a daily basis along with the funds actually utilised. Thus we can accordingly decide about the further deployment of funds in the exchange. Loan availed from the holding company As Motilal Oswal Securities stands as a subsidiary of the parent company, Motilal Oswal Financial Services Ltd, it is facilitated with easier loan provision facilities and funds can be availed from the parent company as and when required. Redemption of Investments in Mutual Funds As the cash flow statement is prepared, the surplus funds are invested in Liquid mutual Funds schemes of huge corpus funds and AUMs (asset under management).Cash is generated when funds that are invested are redeemed and the dividend accumulated thereon. This is generally processed on a daily basis whenever the surplus cash is ascertained. Liquid Mutual Funds enable easy liquidity coupled with less risk, as the risk is mitigated by investment into varied stocks of correlated returns by the asset management company. Arbitrage transactions Motilal Oswal Securities Ltd. has a particular department that analyses the revenues that can be made by way of arbitrage transactions. Different strategies are employed for taking advantage of the arbitrage opportunities in the capital and futures market. Generally the company deals in cash futures .Considerable profits can be booked while the deal involves less risk. The company makes revenues by way of capitalizing on the difference in the value of scrip of equity and futures over the period by employing a combination of different long and short strategies both in the cash market as well as futures market. The amount of revenue generated in the process is informed during the preparation of the cash flow statement. We thus update the amount while preparing the cash flow statement on a daily basis. DVP Institutional releases DVP known as DELIVERY VERSUS PAYMENTS arise when the company, on behalf of it Foreign Institutional Investors (FIIs) undertake the responsibility for provision of funds to the custodian bank of the FIIs when the buy or sell of the shares take place. Fund parked in with the custodian banks are released after the confirmation and are available with the company for utilisation. DVP is further elaborated in the outflow segment. Client Collections Information about the value of the trade conducted over the day and the amount accumulated is conveyed by way of collections obtained from the clients. Consolidated figures of each segment .i.e. NSE and BSE: Cash and FO is electronically communicated by the respective department and the amount is updated in the cash flow as an inflow of funds available for further utilisation. This includes the brokerage earned. After obtaining the Funds availability position, the deployment of the cash is decided. For efficient and cost effective utilisation of the cash resources, the application sources are effectively analysed and the different requirements taken into consideration are as follows: Provisions for salary, bonus, TDS, Advance Tax, Dividends, Operating Expenses Salary and bonus, TDS, Advance Tax provisions, Dividends to the shareholders and the operating expenses for every month is calculated by the accounts section and the total figure is communicated for making the appropriate provisions as and when required. Thereby funds are provided for these revenue expenditure items. Investments in Mutual funds ,fixed deposits, securities and derivatives Funds available have to be put to best possible use .Most cost effective alternatives combined with least exposure to risks result in the majority of the investments in liquid mutual funds with no entry and exit load and a diversified risk approach. Easy liquidity supports daily investments and redemptions and thereby surplus funds in good proportions are invested in the liquid mutual fund of well rated firms like Reliance, ICICI, UTI and FORTIS Mutual Funds having huge corpus funds and considerable Assets under Management. Funds not needed daily can be locked in for a longer period with the banks in the form of fixed deposits with a better rate of return and can be further utilised in for availing bank guarantees and overdrafts against the fixed deposit receipts. As per the direction from senior authorities regarding investments in securities and derivatives, appropriate provisions are made in the cash flow statement and the funds are provided accordingly. Loan Repayment Loans availed from the holding company are repaid with the surplus funds available with the subsidiary company. Accordingly the provisions are made and the position of the net available funds is prepared with the cash flow statement. Margin funding Margin funding refers to the funding of the clients portfolio by the stock broking firm upto a certain percentage .It depends on the segment as to whether the client wants to deal in equity or derivatives .The amount of Margin funding depends on the creditability of the client and their relationship with the company over the period. A certain percentage of interest is charged for the purpose of margin funding. It facilitates easier availability of funds during bullish markets when the clients indulge in vast amount of trading and require funds in excess of their portfolio value. In order to provide for margin funding, appropriate provisions are made and accordingly the transfer of funds are processed by electronic funds transfer on a daily basis. DVP funding Funds are provided for the Deliver Versus Payment (DVP) transaction entered into, by the companys trading unit. This comes under the institutional broking and distribution segment of the company. Thereby appropriate funds are reserved for funding DVP trades. DVP can be elaborated as follows: Monitored by RBI FII Governed by SEBI Guidelines CUSTODIAN BANK Indian Stock Exchange Stock Broker MOSL The above sketch represents the Indian context where a FII is required to be registered with SEBI, RBI and also needs to have an agreement with a Local Custodian as per RBI, SEBI requirements. As per RBI the amounts brought in by FII and maintained in designated account is fully-repatriable outside India including the sales proceeds. It is also important to note that an FII cannot deal in any activity directly without a Custodian to honour its trades. FII registration and monitoring is one of the most cumbersome processes in the capital market today as the FD I cap is highly regulated in our country. In spite of such constraints too the business from this segment is the highest today as compared to historical statistics. Therefore Working capital requirements are visible for funding FII orders in the form of Exchange Margins and Pay-in towards stock exchanges. Payments towards overdrafts, loans, BG commission Provisions are made for payments of overdrafts availed through the banks and the repayment of loan against the shares pledged .Payments are effected through electronic transfer BG commission towards the bank guarantee facilities provided are paid on an average monthly basis. Accordingly provisions are made for the same in the cash flow statement and the outflow is reflected. Client Payouts Funds available with the company include the deposits of the clients in their respective trading and settlement accounts with the company .As and when the net settlement takes place with the clients, the payouts are reflected and fund credited to the clients accounts. This is reflected as the outflow of funds in the cash flow statement.

Functions And Complex Anatomy Of The Cardiovascular System

According to the Discovery Channel, the Cardiovascular System is the generator that drives the bodily machine of humans (Discovery Channel, â€Å"Your Cardiovascular System,† 2016). Its multiple functions and complex anatomy helps humans get through vital tasks (National Geographic, â€Å"Heart,† 1996). Such as, breathing, blood circulation, and food intake. In other words, the cardiovascular system delivers and transports oxygen and carbon dioxide throughout the body, transports and circulates blood throughout the body, distributes nutrients and food within the body and transports waste products out of it (National Geographic, â€Å"Heart,† 1996). It also takes part in the circulation of hormones (National Geographic, â€Å"Heart,† 1996). The cardiovascular†¦show more content†¦The heart is further composed of left and right atriums, arteries, veins, ventricles, valves, and other main parts (National Geographic, â€Å"Heart,† 1996). Anothe r part of the cardiovascular system is blood. Blood is a bodily fluid that runs through the veins, arteries and capillaries to help the cardiovascular system perform its job (National Geographic, â€Å"Heart,† 1996). On average, adults have about 5 litres of blood. Blood is the stream in the human body that takes part in the transportation of oxygen and nutrients, and filtering out waste products (The American Society of Hematology, â€Å"Blood Basics,† 2016). Other functions of blood are protection of the human body by forming blood clots to avoid blood loss, fighting of infection through cells and antibodies, and the regulation of body temperature (The American Society of Hematology, â€Å"Blood Basics,† 2016). The blood is also composed of certain materials. The blood is made up of plasma, red blood cells (erythrocytes), white blood cells (leukocytes), and platelets (The American Society of Hematology, â€Å"Blood Basics,† 2016). The last main part of the cardiovascular system is blood vessels. Blood vessels are tubes in the system that carries the blood (BBC, â€Å"The Circulatory System,† 2014). The three types of blood vessels are arteries, veins and capillaries (BBC, â€Å"The Circulatory System,† 2014). Arteries transport blood away from the heart (BBC, â€Å"The Circulatory System,† 2014). Veins

Comparison and Analysis of the use of Camerawork in Friends and The Office Free Essays

The Office has a â€Å"docusoap† format, this is supported by ingenious camerawork, shots are often shaky, and frames are crowded. The raw documentary style is engrossing, the camera often moves with uncertainty as if it is not known what will happen next. The camera often pans quickly and unsteadily in order to obtain reaction shots. We will write a custom essay sample on Comparison and Analysis of the use of Camerawork in Friends and The Office or any similar topic only for you Order Now There is little consideration to position of elements within the frame, this all adds to the raw docusoap style. Zooming is often done shakily in order to catch reactions. The Office is made up of many two shots and the camerawork is unsteady, also characters often slightly slip out of frame momentarily and the camera must quickly adjust when this character becomes active. Friends is found in stark contrast to the office, it optimises exceptional quality camerawork. Many medium close shots are to be found, with all characters held neatly within the frame. The group shots are framed perfectly with all elements positioned appropriately. Everything is more calm and neat hich demonstrates the high quality of the programme. Editing Firstly the title sequence of The Office has several cross-fades to set the location of Slough. The edit technique used most frequently is the cut, often to catch reactions it also maintains a pace to the episode. Commonly an establishing pan-shot around the office is used before turning focus to a particular interaction between characters. Friends however optimises the cross-fade for transition between establishing hots of city buildings and actual shots of characters. All edit points are dealt with smoothly, little snippets of music often signify a change of scene and add to the general flow of the episode. Application of the Above When Gareth is in the â€Å"Invetigation Office† talking to Glen, the camera shot is really unsteady and is through a set of blinds, this gives the feel that you shouldn’t be watching this happening, it zooms in beyond the blinds to see reactions but always zooms back out to remind you of the blinds being a barrier. How to cite Comparison and Analysis of the use of Camerawork in Friends and The Office, Papers

Market Research Of Fashion Preference - MyAssignmenthelp.com

Question: Discuss about theMarket Research Of Fashion Preference. Answer: Introduction As time goes by and new generations coming, fashions are also changing with time to fit the desire of the current generations. Australia is experiencing a rapid fashion wear style change that are made in a manner that they can stand distinct from the European fashion wear. Culture is a big influence in the transformation of the fashions as considered by Australian designers (Weller, 2013). The research was therefore conducted to check on the market requirement and what is preferred by the Kent Institute students to avoid having a lot of dead stock. From the responses from the students, the information can be transmitted to the designers so that whenever they are designing a new fashion they should consider the preference of the students. The aim of every producer have been to have their products bought at the shortest time possible so that they can produce more and maximize their sales and so to the profits (Nagurney, 2010). Starting up a fashion wear shop around Kent institution tar geting the students as the potential customers need the supply of the fashions that are most preferred by the students. Taste and preference of people vary from one individual to another, but through carrying out a research, the market research results can be useful to identify the common preference of the students. As being one of the factors to consider, population is fundamental for it is associated with the number of possible customers that would be shopping from the business. The business is to be located at a strategic location adjacent to the institution so that the students can easily access the shop. We targeted a population of over 7000 students. Out of that population, a sample size of 20 respondents was taken to participate in the research process. The sample size was made as small to suit and reduce on the expenses that would be incurred should the researcher engage a larger proportion or the entire population. Business technology have rocked all the forms of business and the business management is tending to shift to cope up with the current changes. Social media has formed a platform where the business personnel and their customers interact on a daily basis concerning the products supplied or sold by the business (Trainor et al, 2014). As a result therefore, the fashion wear business management wished to venture into online selling and among the objectives being; To determine the correlation between expenses of an individual per month with their gender. To determine if there exist relationship between online shoppers and the frequency at which they shop online. To meet these objectives, questions on the questionnaires were structured to aim at answering some of these questions by the respondents. Methods of data collection There are several methods that can be used by the researchers to collect data from the respondents. In this market research, questionnaires were preferred. Questionnaire is a set of structured questions interrogating the respondents about a certain subject of study that is filled by the respondents themselves (Scheidt-Nave et al, 2012). The question types that were used in the questionnaire structure were closed ended questions that were specifically for quantitative and qualitative data. This is far much different from interviews where the enumerator ask questions to the respondents directly. The questionnaires used in this case were handed to the respondents directly one on one. Regular and routine data were aimed at being collected concerning the fashion wear as used by the respondents. Questionnaires are known for their advantages of providing the participants with ample time to respond to the questions thus giving them confidence of providing reliable information. The questions structure were made short and easy to understand to avoid the problem of skipping some of the questions by the respondents when responding to the questions. The questions outlined in the questionnaire covered both the qualitative and quantitative data. Every selected participant was required to respond to all the questions as outlined on the questionnaire and then hand it back to the researcher when it is filled with answers. At some points, interviews were incorporated with the questionnaires for clarity pf the questions the respondents found unclear so that the correct responses were provided. From the population of over 7000 students, the sample size that was preferred for use was 20. The participants were selected at random by applying the probabilistic methods such as the simple random sampling so that the participants are not only collected from one part of Kent institution but is spread to cover all parts of the entire institution. This helped to deal with biasness in the collected data and ensuring the correctness of the data. Though small sample size is known for its unrepresentativeness of the population, it was preferred due to some of the advantages it has (Cattaneo et al, 2015). One of the major advantages was that it was pocket friendly and unexpansive not to forget that it also did not consume a lot of time as compared to when the sample size is big. Summary of the dataset Gender Age Frequency Exp/month Fashion Color Preference Material Shopped online Frequency online Female 23-27 Weekly 100 Shoes only Blue Casual wear Leather shoes Yes 5-10 times Female 18-22 Twice 51-100 Shoes only Red Casual wear Synthetic leather shoes Yes Male 28-32 Once 20-50 Clothes and shoes Black Official wear Synthetic leather shoes No 5-10 times Female 23-27 Five times and more 100 Clothes and shoes White Casual wear Rubber shoes No 5-10 times Male 23-27 Twice 51-100 Clothes only Blue Official wear Leather shoes Yes 5-10 times Male 23-27 Once 20-50 Clothes and shoes Black Official wear Leather shoes No 5-10 times Female 18-22 Weekly 100 Shoes only Maroon Casual wear Leather shoes Yes Male 23-27 Twice 20 Clothes and shoes Red Official wear Synthetic leather shoes No 5-10 times Female 23-27 Weekly 20-50 Clothes only Purple Casual wear Rubber shoes Yes Male 32 Once 20-50 Clothes only Green Official wear Rubber shoes Yes 5-10 times Male 28-32 Twice 20 Shoes only Black Casual wear Synthetic leather shoes Yes 5-10 times Male 32 Twice 51-100 Shoes only Blue Casual wear Synthetic leather shoes No 5-10 times Female 23-27 Five times and more 51-100 Clothes and shoes Black Casual wear Leather shoes Yes Female 32 Weekly 100 Clothes and shoes Yellow Casual wear Leather shoes Yes Male 23-27 Once 20-50 Shoes only Green Official wear Rubber shoes Yes 5-10 times Male 28-32 Twice 20 Clothes only Black Official wear Rubber shoes Yes 5-10 times Male 23-27 Twice 20 Clothes only White Casual wear Rubber shoes Yes 5-10 times Female 18-22 Weekly 20-50 Clothes only Maroon Casual wear Rubber shoes Yes Female 23-27 Twice 51-100 Shoes only Red Official wear Leather shoes Yes 5-10 times Female 23-27 Weekly 100 Shoes only Purple Casual wear Leather shoes Yes Table 1: Gender of the respondents Frequency Percent Valid Percent Cumulative Percent Male 10 50.0 50.0 50.0 Female 10 50.0 50.0 100.0 Total 20 100.0 100.0 The presented table above represents the gender of the students who were sampled to take part in the data collection process. As seen, equal number of males to that of females represented by 50% was sampled. Gender equity was opted for to avoid one gender dominancy. Demographic information are some of the important data in the market research since the characteristics of the targeted population can be easily understood which can be important in the business decision making. Table 2: Frequency of buying fashion wear per month Frequency Percent Valid Percent Cumulative Percent Once 4 20.0 20.0 20.0 Twice 8 40.0 40.0 60.0 Weekly 6 30.0 30.0 90.0 Five times and more 2 10.0 10.0 100.0 Total 20 100.0 100.0 The frequency at which the customers buy products from the market is one of the key aspects to be considered when carrying out market research. In this case, since the business to be opened was dealing with the fashion wear, the respondents were required to state their frequency of buying the fashion wear products. 20% of the respondents responded that they only buy fashion wear once, 40% responded that they do buy the fashion wear twice per month, 30% responded that they bought fashion wear on weekly basis and lastly only 10% of the respondents responded that they would buy fashion wear five times or more in a month. Table 3: Preferred Colors by the respondents Frequency Percent Valid Percent Cumulative Percent White 2 10.0 10.0 10.0 Black 5 25.0 25.0 35.0 Green 2 10.0 10.0 45.0 Yellow 1 5.0 5.0 50.0 Blue 3 15.0 15.0 65.0 Maroon 2 10.0 10.0 75.0 Red 3 15.0 15.0 90.0 Purple 2 10.0 10.0 100.0 Total 20 100.0 100.0 Taste of the customers vary from one customer to the other. The taste vary from color to other aspects. 10% of the respondents preferred white color, 25% preferred black, 10% preferred green, 5% preferred yellow, 15% preferred blue, 10% preferred maroon, 15% preferred red and lastly 10% preferred purple for their fashion wear. In this case, supply of the fashion wear has to consider those color taste whenever they are placing order of the fashion wear to be supplied to have customers demands met. Table 4: Students Expense per Month Frequency Percent Valid Percent Cumulative Percent 20 4 20.0 20.0 20.0 20-50 6 30.0 30.0 50.0 51-100 5 25.0 25.0 75.0 100 5 25.0 25.0 100.0 Total 20 100.0 100.0 Twenty percent of the sampled students responded that they did spend less than 20 dollars per month on fashion wear, 30% responded that they did spend 20-50 dollars per month, 25% of the sample responded that they did spend between 51 and 100 dollars on fashion wear per month and another 25% responded that they did spend over 100 dollars per month. From this, it can be seen that majority of the students were spending relatively substantial amount on fashion wear per month. This can be taken into consideration by the business management and decision makers to decide on what amount of goods to supply and how frequent to do that should the spending behavior of the students remain this way. Table 5: Do you Shop online? Frequency Percent Valid Percent Cumulative Percent Yes 15 75.0 75.0 75.0 No 5 25.0 25.0 100.0 Total 20 100.0 100.0 To the question of whether the sampled students shopped online, 75% of the sample responded that they do shop online against 25% of the students who responded that they do not shop online. This showed that high number of were online shoppers and this could lead to the possibility of engaging in online business to sell the fashion wears to the students when making business decisions. Table 6: Frequency of Shopping online Frequency Percent Valid Percent Cumulative Percent 7 35.0 35.0 35.0 5-10 times 13 65.0 65.0 100.0 Total 20 100.0 100.0 For the students who ever shopped online, 35% of the sample responded that they did shop less than 5 times online in a year while the remaining 65% of the respondents responded that they did shop 5-10 times in a year. Despite the growth of technology and interaction between the business and the customers, the internet coverage in almost all over the places, people were still not shopping online at high frequency in a year. Thinking of incorporating online shopping in this case would still be a good idea that would be beneficial in the future as people change from physical shopping to online shopping with time. Figure 1: A graph of Expenses per Month by Gender From the sample, 2 males had their expenses below 20 dollars, 5 male students had their expenses between 20 and 50 dollars, 2 had their expenses ranging between 51 and 100 with only one male student responding that his expenses were more than 100 dollars. On the other hand, 2 female students responded that their expenses were less than 20 dollars, 1 had expenses between 20 and 50 dollars, 3 had their expenses between 51 and 100 dollars and finally 4 had their expenses above 100 dollars. It can therefore be concluded from the data that most of the female students had higher expenses on fashion wear than their male counterparts. Figure 2: A Graph of Age by Gender Only one male student from the sample had 18-22 years of age, 5 of the males had their ages at 23-27 years, 3 had 28-32 years and lastly another one male had over 32 years. On the other hand, 2 female students had their ages between 18 and 22 years, 6 had 23-27 years and the other 2 had their ages above 32 years. Their seemed to be a balance in terms of age for both genders but most of the students had their ages ranging between 23-27 years. Data analysis Table 7: Descriptive Statistics for Quantitative Variables N Mean Std. Deviation Variance age 20 24.05 4.322 18.682 exp_month 20 82.15 47.472 2253.555 Valid N (listwise) 20 The participants average age in the process was 26.05 years with the variance of 18.682 and standard deviation of 4.322. Expense per month for sampled individuals had a mean of 82.15 dollars, variance of 2253.555 and the standard deviation of 47.472. it can therefore be seen from the above table results that students expenditure on fashion wear was below 100 dollars per month. Hypothesis testing Table 8: Correlations Between Gender and Expense per Month gender exp_month gender Pearson Correlation 1 .700** Sig. (2-tailed) .001 N 20 20 exp_month Pearson Correlation .700** 1 Sig. (2-tailed) .001 N 20 20 **. Correlation is significant at the 0.01 level (2-tailed). Hypothesis H0: There is no correlation between expenses of an individual on fashion wear per month with their gender. H1: There is correlation between expenses of an individual on fashion wear per month with their gender. In the market research, one of the key objectives was to determine the correlation between expenses of an individual per month with their gender. From the correlation test table the Pearson correlation coefficient (r) was .700 meaning that the correlation was positive and strong between the expenses per month of an individual with their gender. The expenses of an individual were most likely to be affected by the gender of an individual as they showed strong correlation. As a result therefore, we reject the null hypothesis since significance value is less than P-value (.05) and conclude that there is a correlation between expenses of an individual on fashion wear per month with their gender. Table 9: shopped online * frequency online Cross-tabulation frequency_online Total 5-10 times shopped_online Yes Count 7 8 15 % within shopped_online 46.7% 53.3% 100.0% No Count 0 5 5 % within shopped_online 0.0% 100.0% 100.0% Total Count 7 13 20 % within shopped_online 35.0% 65.0% 100.0% Forty six point seven percent of the sampled students responded that they shopped online in less than 5 times per year against 53.3% of the respondents who responded that they did shop online at a frequency of between 5 and 10 times per academic year. This showed that the majority of the students were online shoppers at a relatively higher frequency in each academic year. Table 10: Correlations between Shopped online and Frequency of Shopping online Shopped online Frequency online Shopped online Pearson Correlation 1 .424 Sig. (2-tailed) .063 N 20 20 Frequency online Pearson Correlation .424 1 Sig. (2-tailed) .063 N 20 20 Hypothesis H0: There is no relationship existing between online shoppers and the frequency at which they shop online. H1: There is relationship existing between online shoppers and the frequency at which they shop online. Since the significance value (i.e. .063) is greater than P-value (.05), we fail to reject the null hypothesis and make a conclusion that indeed there was no relationship existing between online shoppers and the frequency at which students shopped online. This means that being that the students shop online would not be enough to determine the number of times they would be shopping online. From this therefore the business decision makers are supposed to take into account that they should not only rely on the fact that large number of the students were shopping online but the frequency of shopping also matters and which the test has determined to there being no relationship. Conclusion In conclusion, from the result we have found out that the mode of expenses of an individual is directly related to gender of an individual in response to buying fashion wear. Also, it can be concluded that there is no relationship existing between online shoppers and the frequency at which they shop online. It is therefore recommended that the business purchase department to consider the varied preferences of the students so that the fashions supplied best suit students desire. Reference Cattaneo, M.D., Frandsen, B.R. and Titiunik, R., 2015. 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