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

Formulate a Budget - Assignment ExampleSince our store is located in the main shopping hub in the downtown area therefore, we strongly believe that this factor would help us grow and to achieve success on the longer run (Longenecker, Petty, Palich, & Hoy, 2013 Ray, 2010). Furthermore, the company also aims to receive a 15% growth in the salesand50%grossprofit margin is also expected by the end of the thirdly year.Since, our major assets are residing in the inventory therefore we have to come up with a cypher plan that helps us to survive in the trade 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 trenchant to formulate a fresh budget plan focusing on all the key elements and factors that may or may not become an blockage for the company in the coming future (Atrill & MacLaney, 2011 Gibson, 2010).The purpose of this budge t 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 other 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 modern couture is presented as below.Thus, it can be concluded that if the aforementioned budget plan turns successful than the company can easily generate an step-up 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 once the