Formulate a Budget Assignment Example | Topics and Well Written Essays - 1000 words

Formulate a Budget - Assignment ExampleSince our blood line is located in the main shopping hub in the downtown area indeed, we strongly believe that this part would help us grow and to achieve success on the longer run (Longenecker, Petty, Palich, & Hoy, 2013 Ray, 2010). Furthermore, the companionship likewise aims to receive a 15% growth in the salesand50%grossprofit margin is also expected by the end of the third year.Since, our major assets are residing in the inventory therefore we have to come up with a work out scheme that helps us to survive in the market place for at least three years (Shapiro, 2008 Longenecker, Petty, Palich, & Hoy, 2013). Although there have been numerous issues related to the business as the on-hand cashfor apparel was very low,the company has decided to formulate a fresh budget excogitation focusing on all the key elements and factors that may or may not become an prohibition for the company in the coming future (Atrill & MacLaney, 2011 Gibson , 2010).The purport of this budget plan is to ensure that the $50,000 loan is secured. The purpose of this loan / supplemental financing is necessary as it is required for the decoration of the outlet and its furniture and otherwise operational expenses. The investment by the owner includes $60,000. It is forecasted that if the company works as per the expectation then the budget plan would allow the company to become profitable by the end of the first year. The budget plan that has been formulated for the coming three for ABC contemporary couture is presented as below.Thus, it can be concluded that if the aforementioned(prenominal) budget plan turns successful than the company can easily generate an increase of 10% in the second year and 25% increase in sales by the end of the third year. However, if the company plans to expand then the net income may increase as per the demand and expansion.It should be noted that at one time the