This website uses cookies to ensure you have the best experience. Learn more

Accounts For Small Business Essay

3175 words - 13 pages

List of tables
Table 1- Cost per unit……………………………………………………………. 9
Table 1.1- Materials usage budget…………………………………………….. 10
Table 1.2- Production budget…………………………………………………… 11
Table 1.3- Sales budget…………………………………………………………. 12
Table 1.4- Cash budget………………………………………………………….. 13
Table 1.5- Income statement……………………………………………………. 14
Table 1.6- Balance sheet………………………………………………………… 15
Table 1.7- Break-even analysis chart and table………………………………. . 16

Stacy’s will set up and operate as a Sole trader business in Montrose, Chaguanas with a capital of $300,000.00. This location was chosen because Chaguanas is in the heart of Trinidad; it targets consumers in the North, South and the ...view middle of the document...

00 at one yard, string for $1.00 at two yards and vamp or upper for $80.00 at half yard. After calculating that cost a 60% mark up was added in order to make a profit bringing the total cost at selling a pair of shoe at $288.00. (See appendix 1).
Materials usage budget
In this budget the amount of materials Stacy’s will be using to produce the quantity of 1900 pair of shoes is calculated using the cost for one pair of shoe at $288.00. (See appendix 2).
Production budget
This budget shows that the actual cost to produce 1900 pair of shoes using all the materials for the month and the entire year at total at a projected figure of $342,000.00. (See appendix 3)
Sales budget
This is a budget forecasting how much Stacy’s sales will be selling 1900 pair of shoes for the year using the materials per cost and the cost per pair of shoe with a projected figure of $547,200.00. (See appendix 4)

Cash Budget
After preparing previously my cost per pair of shoe and how much materials it would require to make each pair of shoe together with how much my predicted sales for the year would turn out to be, the cash budget (see appendix 5) was prepared using figures from appendix 1-4. With a capital of $300,000.00 and my projected sales at $547,200.00 (see appendix 4) Stacy’s total receipts was calculated to be $847,200.00. The sales figure was calculated using a varying quantity of shoes to be sold each month as January and February month shoes being sold at 200 pairs each due to the fact that January being the first month in the year consumers like to go out to work or school or even to go out with their families looking stunning since it being a new year and February being the month for Valentine’s Day, customers like to go out to fancy dinners and cocktail parties and of course they want to look ravishing for their loved one and also people also buy gifts as their token of appreciation in this month so they buy what most women want “shoes” hence Stacy’s will be producing more shoes for these months.
Also during these months advertising will be at a higher cost of $400.00 compared to the other months where production will be slower at $200.00, due to the occasions and also for promoting purposes. In the month of January being the month Stacy’s will be opening, a machine at a cost of $5,000.00 that will be used to make the shoes, a computer costing $1,500.00 was purchased for this price because as we all know the world today is swamped with technology so bargaining for this price was not hard which will be used to record the company’s transactions and to do the accounting procedures, a vehicle valued at $30,000.00 to carry out all orders and bring in supplies and to do banking with an insurance costing $600.00 for a one year period will be bought and fixtures and fittings at a cost of $10,000.00 which will be covering painting, plumbing, wiring, furniture will be entered under payments. Another cost standard each month is rent at $2,000.00, electricity...

Other Essays Like Accounts for Small Business

Accounting I Essay

1348 words - 6 pages accounts with their debit and credit balances General ledger keeps all accounts Subsidiary ledger keeps detailed information about certain accounts An example: General ledger keeps a sales revenue account for all customers and products Sales revenue subsidiary ledger keeps sales revenue information by customers or by products | Posting | Posting is the process of moving the balances of journal entries to appropriated accounts in the

Cash Management Services Essay

1269 words - 6 pages through all needed cash and payable accounts for your business. All three banks offer a similar range of services for cash management; although, Citi Bank seems to have more available for both large and small business owners. Citi Bank gives options on being able to adequately run your financial needs with ever expanding opportunities for your growing business. One disadvantage to using this bank might be that since they are such a large commercial

The Top 4 Tax Strategies to Save Your Business Money

647 words - 3 pages Tax season can be daunting for everyone, but small businesses and entrepreneurs need to pay particular attention to the benefits and deductions available to them in order to reduce their tax liability. There are many different types of business structures and strategies for how a successful business should be run, but one thing is certain -- across the board -- everyone is looking for ways to save money! Here are four tax strategies that can

Accounting for Managers

1015 words - 5 pages .  | Which of the following is not classified as a current asset? | | | | | Prepaid expense | | x | Patents | | | Accounts receivable | | | Inventory | | | | Score: 1 of 1 | | 10.  | Which of the following is the correct order for listing current assets on the balance sheet? | | | | | Cash, accounts receivable, inventories, short-term investments, prepaid expenses | | | Cash, accounts receivable, prepaid

Cookridge Carpets Limited

4361 words - 18 pages accounts clerk recently hired has been employed to manage the accounts department. The management style within the business at present appears to be laissez faire. This is demonstrated by each accounts clerk being given specific tasks, but having complete freedom as to how to complete the task. For example, there are no written procedures for any task within the accounts department. 5.2 The accounts department – key staff: 5.2.1 Wages


645 words - 3 pages proper use will add to the growth and profitability. But on the other hand ill-thought-out advertisements can be money eating and also tend to loose market share for that business or company. Large Vs Small Business From the business point of view, a company should invest in advertising positively. If it’s a small business the amount of money spent on advertisements maybe of concern. The amount of competition given by

Revenues and Expenses

1161 words - 5 pages reconciliation. b. Prepare any necessary journal entries for Palmetto. 6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account

Week Two Exercise Assignment B

1162 words - 5 pages any necessary journal entries for Palmetto. 6. Direct write-off method. Harrisburg Company, which began business in early 20X7, reported $40,000 of accounts receivable on the December 31, 20X7, balance sheet. Included in this amount was $550 for a sale made to Tom Mattingly in July. On January 4, 20X8, the company learned that Mattingly had filed for personal bankruptcy. Harrisburg uses the direct write-off method to account for uncollectibles

Accounting and Account Receivable

1915 words - 8 pages two ways a company can account for bad debt expense: the direct write-off method and the allowance method. However, when an asset has been impaired and the loss can be reasonably estimated, the allowance method is the most appropriate to solve this situation, following the matching principle of accounting (Kieso et al., 381). The allowance method refers to an uncollectible accounts receivable process that records an estimated of bad debt expense

Chapter 7 Self Study Problems

1168 words - 5 pages or it is not practical to issue a cheque. Because of the costs involved in issuing a cheque, the business is justified in paying small amounts of purchases with petty cash. There are a number of internal controls over the petty cash fund that Malik should follow: * One person should be appointed the petty cash custodian and made responsible for the fund. * A prenumbered petty cash receipt should be signed by the custodian and the

Kudler Accounting System

817 words - 4 pages of management tasks and allocate more time to focus on customer relations. The new accounting system shows accurate reporting of business transactions, easy access to financial statements, and up to date reports on accounts payable, accounts receivables. With all the new incorporation to the company, it will allow them to accurately manage assets, and provide information for decision making throughout the company. Cost The new accounting

Related Papers

Selecting A Database For A Small Business

1115 words - 5 pages companies. The employees take these materials from the shipping company, produce the product, and then deliver the finished product to the aerospace manufacturer (customer). For a small company, Jay-Star keeps a very hectic schedule. Any miscalculation on shipping dates could be disastrous for the order flow of the company. This is why this database would prove to be beneficial in keeping a more precise schedule of events. This paper will explain the

Accounts Receivable Turnover And Dso Essay

1045 words - 5 pages receivable turnover average, and more. Accounts Receivable Turnover Meaning¶ Accounts receivable turnover measures how efficiently a company uses its asset. It is an important indicator of a company's financial and operational performance. Many companies even have an accounts receivable allowance to prevent cashflow issues. A high accounts receivable turnover indicates an efficient business operation or tight credit policies or a cash basis for the

Blue Ocean Strategy Essay

1191 words - 5 pages enjoy that business without the overhead. This was the biggest mistake that company made. Rancho’s Current Status Rancho was a family business from the start. Jose’s wife, Maria, and all of Jose’s sons work for him. And just like the family grew exponentially in the coming years, so did Rancho. So much so, that Jose left his employer to become a full-time business owner. Some of those small accounts eventually grew to large accounts, and

Cash Management Services Essay

1786 words - 8 pages from $15 for the gold package and $25 for the platinum package. The fees however, could be waived if the person’s criteria’s were met such as purchasing a US bank payment solution, or having $25,000 combined average collected business deposit balance (U.S. Bancorp, 2011). With these offerings the US banks website offered a number of different services provided for small business owners such as payroll services, workplace banking, direct