Future projections for Sailing Voyages Inc-Evaluation of the Current Financial Status of the Company and Future Projections
This report has been prepared in accordance with Marco Smith’s requests regarding the financial status and future projections for Sailing Voyages Inc. Smith wants to find out the approximate variable expenses and income realized by the company. Basing the calculations on these particular findings, the report is also in a position to advise Smith regarding the number of trips the Canadian must make in a year to breakeven. In addition, basing the arguments on the total approximate revenue and total variable expenses, the report essentially provides a projection matters the number of trips advisable to hit the owner’s targets. Eventually, the report has been able to provide Smith with different recommendations to adopt in a bid to achieving his income goals.
The current approach is optimally sustaining for the business operations. However, some changes are necessary in order to achieve more profits. The report provides comprehensive suggestions on the alternatives that Mr. Smith should adopt to realize better results.
For any business investments, it is quite hectic trying to come up with an operation approach that can sustain the business as well as providing profits, otherwise, a self-sustaining business. Proper financial structures are therefore required to monitor both the income and expenses and ensure the business is at a break-even at least. Calculating and projecting the total actual and expected operating expenses can help a great deal in implementing any financial decisions. Financial accounts for the investment provide a reflection of the business regarding how well or poorly it is doing. It is therefore in regards to this that this proposal as requested by Marco Smith provides a comprehensively detailed analysis and calculations of the current financial status both the income and operating expenses. The proposal aims to find out whether the company’s business activities do indeed meet the intended goal, profit making. By calculating the total revenue and the operating expenses, can provide the cash position of the firm which would be used in deciding what to change, what to add in the operations as well as what to remove from the normal daily operation manual. Some of the eventual calculations will also be used to make future financial projections.
Sailing Voyages Inc. is a sailing company founded by Marco Smith with a summer tourist attraction on the Great lakes as his original idea. The company operates a sailing schooner by the name Canadian basically for groups and also individuals. The company has been in operation for a few years. Being a summer oriented company; it operates mainly from around mid-May to mid-September. On average per year, within this period only the Canadian sails 100 days with an average of 30 tourists per cruise. The ship also a six member crew plus the captain who is actually the company owner. As complementary services to the tourists, the sailors are provided with refreshments and lunch. Besides being in operation for quite some time, Smith is still in darkness with regards to the full potential of the business and therefore calculations, projections and adjustments would be necessary for his decision making. The report works towards providing an action plan that will not only provide more income but enable the company to grow to its full potential.
Currently, the company averages 30 tourists per trip with each trip costing 100 US Dollars which brings in 3,000 US Dollars per trip in revenue. While this is the revenue per day, the company also incurs expenses through wages for the crew members with each crew member getting 100 US Dollars per diem. The company also caters for refreshments and lunch for their clients plus the crew. There are several alternatives which can be adopted in a bid to realize more profits. Smith can either maintain the current operation approach, reduce the number of crew members, outsource less expensive supplies for refreshments and lunch and also, increasing the number of trips.future projections for Sailing Voyages Inc