Accounts for Small Business

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

Introduction

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 Central because of the city’s location. Montrose Chaguanas is the main road of Chaguanas itself making it easy to locate and convenient to all types of customers, a lot of people tend to go to Chaguanas to shop especially around occasions; this is why I chose this particular location.

The product that I will be producing to sell is shoes. It will be made with the finest quality materials from local manufacturers of materials such as leather, cloth, etc whom is well known as Radica’s Trading and will be stitched through to perfection with the ultimate stitching machine that was built especially for shoes. The shoes will be comfortable with all different designs coming from my employees who have had experience in the past on designing and creativity along with their certification and valuable skills.

This product will be ideal for men and women especially of the working population and also the ones who are in school, basically my shoes are designed and made to suit everyone with long lasting durability and will also be able to withstand long hours.

Assumptions

Cost per unit

Based on my calculations one pair of shoe is costing me $180.00 to produce, this was calculated using materials such as leather for $99.00 at one yard, string for $1.00 at two yards and vamp or upper for...