Nobody downloaded yet

Business Accounting - Assignment Example

Comments (0) Cite this document
New product ideas and innovation have helped the British economy since its foundation. Innovation positively affects the economy because it provides companies with new products that increase revenues. The product idea that I have is a high degree oven that can be attached to existing street vendor equipment or can be sold as a complete vending unit to start your own pizza business…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.5% of users find it useful
Business Accounting
Read TextPreview

Extract of sample "Business Accounting"

Download file to see previous pages The pizza oven that I invented replaces the utility of a ?10,000 oven for a fraction of the price. The oven is able to cook personal pizzas of nine inches in three minutes or less. The reason that the pizza is cooked so quickly is because the oven cooks the pizza at 825 degree Fahrenheit. There are currently no existing ovens for street vendors that can reach the temperature needed to cook pizzas quickly. The idea is to sell the ovens with licensing contracts to generate both instant sales and residual income. The cost of building and integrating three ovens into a hotdog vending cart or similar equipment is ?1,500. The product would be sold to these types of clients that are looking to expand their business for ?5,000. The gross margin of the sale is 233%. Vendors interested in the proprietary rights of the oven have to pay a 10% on net sales royalty fee. The royalty fees must be paid on a monthly basis. People interested in the product have a second option if they not have an existing business. The product can be sold in as a pizza cart vending equipment that can be used to start your own business. The price of the pizza cart with three ovens is ?25,000. The cost to produce the pizza cart is ?13,000. The gross profit on the sale of the pizza cart equipment is 92.30%. ...
The pizza style that these ovens cook is called Neapolitan pizza. Neapolitan pizza is a premium pizza meal cooked in Italy in brick ovens at high temperatures. The clients that purchase the oven attachments or the pizza cart can advertise the business as Neapolitan pizza mobile restaurants. This niche market allows the vendors to offer a specialty product at fair prices. The suggested retail price of a personal pizza with one topping and a soda is ?3.15. Business partners will have the flexibility to charge up to ?4.38 for a pizza combo because the premium nature of the product can support a higher price point than ?3.15. The sales projections of the company are based on the estimate that a pizza restaurant can generate yearly sales of ?276,500. The table below shows projected income for the next year. units Pounds Oven upgrades income 50 250000 Pizza carts income 25 625000 875000 Royalty income 2073750 Total income 2948750 Expenses Oven upgrade 50 75000 Pizza carts 25 325000 Labor costs 480000 Administrative expenses 500000 Other costs 100000 Business loan 55824 Total Expenses 1535824 Net income 1412926 The projected net income includes sales of 50 oven upgrade packages and 25 pizza cart equipments. These two sources of income will generate revenues of ?875,000. There is money to be made by selling equipment, but the real money maker in this business model is the royalty income. The projected royalty income for the first year of operations is ?2,073,750. The projected net income of the company is ?1,412,926 with a net margin of 49.80%. Net margin is a financial metric that measures profitability (Investopedia, 2012). The reason that the net margin is so ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Business Accounting Assignment Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Business Accounting Assignment Example | Topics and Well Written Essays - 1000 Words)
“Business Accounting Assignment Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business Accounting

Business accounting

... Business Accounting Introduction The economic environment worldwide is ever changing taking into mind the recessions the world has experienced particularly the latest downturn of 2008/2009. Considering Europe in which one of the strongest economies, UK reside, is going through bad times including the case of Euro zone debt crisis which has affected the whole EU as well as the countries relating to it in any means. Europe, which was once considered one of the most successful world segment and was analyzed to take over US as the super power has now been dipped into the midst of debts and turmoil, especially the most indebted cities including Greece, Italy and Spain. Many other hurdles have struck Europe...
8 Pages(1500 words)Essay

Business accounting

...?Introduction This paper is based on our efforts to document the value of accounting as a system and of the accountants who work on it to business enterprises. The goal of writing this paper includes the identification of concrete uses and application of data that have been generated through both financial and managerial accounting. The specific tasks and duties of an accountant are detailed herein, based on answers provided by a real-life accountant who has been requested to be a part of this research endeavor. An account of the owners of the business enterprise - as the employer of the...
6 Pages(1500 words)Essay

Business Accounting

... 2013] (2012). Annual Report Acer Group 2012. [Access 25 December 2013] (2013). Overview. [Access 25 December 2013] Dun & Bradstreet (2013). Key Business Ratios – SIC 3571: electronic computers. [Access 25 December 2013] Garrison, R., Noreen, E. (2003). Managerial Accounting (6th ed.). Boston: McGraw-Hill Irwin. (2013). Return on Assets (ROA). [Access 25 December 2013] (2013). Debt ratio. [Access... Group was 0.89 which is lower than the industry average of 1.50. The working capital of a business is calculated subtracting current liabilities from current assets. Acer Group had a working capital in 2012 of $954,888,000. This metric measures the ability of...
4 Pages(1000 words)Essay

Business accounting

..., D 1998, Purchasing and costing for the hospitality industry, Hodder and Stoughton Educational, London. Fardon, M & Cox, D 2000, Accounting: an introduction to the principles of accounting, Osborne Books Ltd., Bath. Keown, A.J., Martin, J.D., Petty, J.W., and Scott Jr., D.F, 2005, Financial Management principles and applications, Pearson/Prentice Hall International Edition, 10th Edition. Wood, F 2002, Frank Wood's business accounting. - 1, Financial Times Prentice Hall, Harlow.... Running Head: FINANCIAL REPORT Financial Report in Harvard Style by 12 March 2007 0. Introduction The performance of a business organization is quantitatively reflected in its financial statements. Ascertaining the financial health of a company...
4 Pages(1000 words)Essay

Business Accounting

...Business Accounting a) Calculation are based on low level of risk assumed by the company and this level the risk adjusted discount rate (RADR) is given at 10%. Comparing the net present value of investment the alternative (ii) is preferred because present value of the investment in alternative (ii) is lower than the alternative (i). b) Assessment using Payback method Investment on new equipment $128,000 Year Cash flow Cumulative cash flow $ $ 1 40,000 40,000 2 80,000 120,000 3 30,000 150,000 4 12,000 162,000 The payback period of investment using payback method is three years. It is not possible to take risk based decisions under this method, because risk is function of time as well as...
4 Pages(1000 words)Essay

Business accounting

.... Moreover, the liquidity crunch problem makes the performance of Whole Foods Market, Inc. slightly vulnerable. SOLVENCY RATIO Debt to Equity: Dependency on debt financing is not a bad habit but it has consequences if you rely on more. Whole Foods Market, Inc. debt to equity ratio is lower in comparison with the previous year. The factors of business volume, Inc.rement in sales, fulfilment to pay the suppliers and acquisitions of fixed asset. Due to the expansion in business, Whole Foods Market, Inc. has plenty of financial obligations, most of which has been acquired through debt. In 2008, Whole Foods Market, Inc. reliance more on debt financing as compare to the previous years. Interest Coverage Ratio...
2 Pages(500 words)Assignment

Business accounting

...(Framework 24). Understandability A crucial feature of the information furnished in financial statements is that it has to be promptly apprehensible by users. For this reason it is assumed that users have a rational knowledge of business and economic actions and accounting and a temperament to analyse the information with sensible thoroughness. But certain information with regard to complex matters, just because they are difficult to understand by users cannot be excluded. Such information is important from the view of its significance to the economic decision-making needs of users (Framework 25). Relevance If the information depicted by the financial statements is to be relevant for its users then such...
6 Pages(1500 words)Essay

Business accounting

...quality organic poultry feed at a reasonable price.. The first step of this transformation is the writing of a business plan. This plan is being used as an internal document to assist in the development of the business. The Industry Poultry feed industry is not a new one in the market; it has developed with the poultry management practices. The industry has an elastic growth with the growth in demand for poultry. However, the traditional poultry feed industry, which is in China and Africa, comprises mostly of either local farmers who sell their by-products of grains to poultry farmers of fishermen who sell the dead fish. No research and development has been made on a large scale in this industry in...
7 Pages(1750 words)Essay

Introduction to Business Accounting

...Introduction to Business Accounting Introduction to Business Accounting Profit and Loss Account Dave Brown Year ended 31December 2011 Sales 190,200 less cost of goods sold opening stock 21,000 +purchases 84,300 - closing stock 70,000 35,300 Gross profit 154,900 less expenses Advertising 1,650 Wages and salaries 42,000 Insurance 1,300 Heating and Lighting 1,800 General Expenses 13,450 Change in provision 700 Depreciation: Motor Vehicles 5,000 Depreciation: Computers 3,500 69,400 Net profit 85,500 Balance Sheet Dave Brown 31-Dec-11 Historic cost Acc. Depreciation Net Book Value Fixed assets Motor Vehicles 20,000 ...
5 Pages(1250 words)Essay


...According to Alberta’s Climate Change Program Strategy, the greenhouse gas can be accounted for. The government of Alberta has designed come up with a climate change strategy. There is a specified gas emitter’s regulation. The regulation considers the threshold or target or price, the ways of complying with the regulations and the context within which the greenhouse gasses are emitted (Bennett, Jan, & Teun, pp 122-2234). The Alberta has an offset system with an overview and the offset protocols, which applies the carbon capture and storage protocol. An accounting system has been established for verification and auditing of the entire system to ensure adherence to the regulations and the set standards. ...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Business Accounting for FREE!

Contact Us