Canada Goose Exporting For China Essay

1686 Words Jun 23rd, 2015 7 Pages
Canada Goose exporting to China Himanshu Puri (000361959)
Paramjeet Saini (000360787) Ritika Sharma (000360793) Qiayizha Gulimina(000361473)

Financial Plan
Analysis
• Breakeven – how many units of your product must be sold to cover fixed costs
This is a reality check. If the number of units is very high, then may need to review costs.
Breakeven = Total fixed costs/(selling price – cost of goods sold) = number of units
Answer : As we assume that fixed cost of the company will be $300,000 So, In order to get breakeven point company has be implement formula as below:
Breakeven = Total fixed costs/(selling price – cost of goods sold) = number of units
Where; Fixed cost for the company is $300,000
Selling cost –$513080 & COGS will be 256540
So Breakeven point will be achieved by company in its initial months. Here, fixed expenses and variable expenses will be covered by the company from local market and continue business operations respectively.
• When does the company achieve positive cash flow (before considering loans or investment)
What can be done to improve cash flow?
Answer: As per our financial report of cash flow statement company will achieve its positive cash flow after the 1st half of initial year. However, Company has to make regular supply of its products and services. In cash flow statement after considering all the loan or investment by the shareholders we assume that outflow and inflow of the…

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