Essays on Financial Consideration Assignment

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The paper "Financial Considerations" is a good example of a Finance & Accounting assignment.   There are financial considerations that Sally needs to consider before setting up a new business venture. These considerations are very crucial in that they help her to establish the returns she will receive from the venture and the associated costs to be incurred in the new venture.   If the results of the considerations come up to be effective for the new business to start up, then it will be advisable for her to start it up. They are hence important in estimating the outcome and the risks and also the returns to be gotten from the business venture intended to be started up.

(Guiltinan et al, 1996). In the case of handsome results have been gotten from the figures given by Sally. The figures she provides show that the business property is to be leased. The total costs to be incurred in setting up the venture include furnishing the new business place at a cost of $100,000. Another cost is the equipment cost estimated at $40,000. This translates to a total of $140,000 in the startup costs.

She also categorically states that the entire amounts required are going to be raised through the borrowing of loans from financial institutions. This hence means that she will have an outstanding debt of $140,000.  According to her, the new venture is to make a half level of sales for the beginning. Through this, we can hence classify this as half of the maximum units produced to be sold. The number of units to be produced per day is $1440 units. This hence means that the amount of sales is estimated to be 720 units per day for the first two-quarters of the business operations.

The business is to however produce two different types of produce. The long black type is to retail at a price of $3 per cup. Assuming that the ratio of the long black to the latte is 1:1, the number of units to be produced daily of the long black type is 360 units. This is also the same number to be produced by the other type latte.


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