Financial Plan - Assignment Example

Vending machine being the most important asset is the first to be purchased. A vendor machine cost 200 and purchases for fifty machines were made and distributed at each location. Products provide are; meals, drinks and snacks at each vendor. As I begin, drinks are bought at four dollars and sold at five dollars realizing a profit of a dollar per drink. Meals are bought at .75 and sold at a dollar similarly to snacks realizing a profit of a .25 dollar per meal and snack. The units per the product served rise at a half percent in semiannual basis during the five year period.

After every 6 months we increased purchases by half of the previous period up to the third year. For the fourth year and fifth year, the purchases were 400 units, 2000 units and 2000 units per month for meals, snacks and drinks respectively. This help account for business growth and development of the business. At the starting periods many variable assets are inclusive thus the reason of lower starting stock, as progress is made profits are realized within the period thus on the third year we replaced 10 vending machines that were