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Akshay Kumar s most recent business endeavour involves selling timber photo frames to homeware stores. He has registered a new private company for this latest
Akshay Kumars most recent business endeavour involves selling timber photo frames to homeware stores. He has registered a new private company for this latest venture, with himself as the sole shareholder, and plans to open to customers in the first week of November. His goal is that the company start making a $ monthly operating profit within its first six months. In October, Akshay plans to open a company bank account and invest into that account $ cash for working capital and an amount sufficient to cover purchase of the companys non current assets. These assets will be bought and paid for by the company on November st Furniture, fixtures and fittings are expected to cost $ and have a year useful life, while computer equipment will cost $ and have a year useful life. All these assets will be depreciated using the straightline method with no expected salvage value. The timber photo frames will be sold for $ each. Forecast monthly unit sales are: in November; in December; in January; in February; and each month after that. Sixty per cent of customers are expected to pay in the month of sale, in the month after sale, and the remainder in the second month after sale. A month contract with a supplier of photo frames has been negotiated but not yet signed. This contract locks in a $ cost per unit as long as Akshays company orders at least units monthly and pays within days of order. The contract also stipulates that the supplier will deliver the order within one week. Based on these contract terms, Akshay plans to order in the third week of each month, commencing in October, and pay the supplier at the end of the allowed credit period. The order size will be the number of units forecast to be sold by his company in the next month. Company operations will take place out of a rented office and storeroom with quarterly rental payments of $ made in advance, commencing at the beginning of November. Other forecast company operating expenses per month from November onwards, all of which will be paid for in the month incurred, are: insurance $; wages $; utilities $; and marketing $ Make a monthly cash budget for November to April inclusive based on initial forecasts and a brief interpretation that also highlights any major implications for the business; and clarification of financing needs with suggested financing sources. clarification of financing needs with suggested financing sources.
Akshay Kumars most recent business endeavour involves selling timber photo frames to homeware stores. He has registered a new private company for this latest venture, with himself as the sole shareholder, and plans to open to customers in the first week of November. His goal is that the company start making a $ monthly operating profit within its first six months.
In October, Akshay plans to open a company bank account and invest into that account $ cash for working capital and an amount sufficient to cover purchase of the companys non current assets. These assets will be bought and paid for by the company on November st
Furniture, fixtures and fittings are expected to cost $ and have a year useful life, while computer equipment will cost $ and have a year useful life. All these assets will be depreciated using the straightline method with no expected salvage value.
The timber photo frames will be sold for $ each. Forecast monthly unit sales are: in November; in December; in January; in February; and each month after that. Sixty per cent of customers are expected to pay in the month of sale, in the month after sale, and the remainder in the second month after sale.
A month contract with a supplier of photo frames has been negotiated but not yet signed. This contract locks in a $ cost per unit as long as Akshays company orders at least units monthly and pays within days of order. The contract also stipulates that the supplier will deliver the order within one week. Based on these contract terms, Akshay plans to order in the third week of each month, commencing in October, and pay the supplier at the end of the allowed credit period. The order size will be the number of units forecast to be sold by his company in the next month.
Company operations will take place out of a rented office and storeroom with quarterly rental payments of $ made in advance, commencing at the beginning of November. Other forecast company operating expenses per month from November onwards, all of which will be paid for in the month incurred, are: insurance $; wages $; utilities $; and marketing $
Make a monthly cash budget for November to April inclusive based on initial forecasts and a brief interpretation that also highlights any major implications for the business; and clarification of financing needs with suggested financing sources.
clarification of financing needs with suggested financing sources.
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