Financial Analysis

Projected Accounts to Management

[Name of Student]

Projected Accounts to Management

Introduction

Financial projection is the main ingredient to prepare a good financial plan, without projecting a company cannot progress because it makes the financial managers as well as the management well aware of the consequences and future. On the other hand its importance becomes more significant because it helps in planning the future market demand and also aids in deciding a better price for the product. Therefore, in this report I am developing understanding about the development of a garment product i.e. (Shirt) and the costs involved in making it.

Product Details

The product is a 'Pure CustomizedShirt', which is very famous these days and it has a great demand locally and internationally. The pure cotton shirts are always in fashion and can be wore in any season. We offer the customer a different look in different colors which they didn't imagine before. We offer the customers to design shirts for themselves which means they can be customized as according to the will of the customer, the customized shirts are available in different designs which makes them more attractive and a piece to buy for the customers at first sight.

It would be optional choice for the customers to choose any graphic or art work on the shirts. Keeping in view the international market and standards the fabric would be pure and flexible. Twin collar shirts are also offered to the customers at premium prices. The option is also given to the customer that they can also design the shirt online but in that case the price of the shirt would comparatively much greater than the normal range. But the quality and stitching of the shirt is totally guaranteed.

Market Analysis of the Product

Market can be categorized into two major segments for the T-Shirts. The first group of customers is those people who desire to wear the already designed shirts by us. The second group of customers includes those people who have desire to design a T-shirt for themselves. The market statistics shows that in 2010, the T-shirts sold were approximately around £210 billion all around the world including different age selections. With respect to NPD Group Inc., approximately £77 billion were spending on buying clothes. The statistics predict that the market for this business have great potential.

Age Group

For the Graphic T-Shirts the age Statistics which makes the market is as follows:

Age 15-25

70% Students

Individual Income £ 2500

Market Analysis

Year 1

Year 2

Year 3

Year 4

Year 5

Potential Customers

Graphics

8%

7,879,664

8,431,240

9,021,427

9,652,927

10,328,632

8.00%

Artwork

9%

5,969,854

6,447,442

6,963,237

7,520,296

8,121,920

9.00%

Total

8.42%

13,849,518

14,878,682

15,984,664

17,173,223

18,450,552

8.42%

Estimated Cost for making a Shirt

There are merely three types of costs which in involved in making a product in the factory. These costs are as follows:

Labor ( the labor cost can be changed as according to the work load and specification of the customer)

Material ( Material can be vary and depends on the market prices)

Overhead (they can be fixed in case of rent).

Most of the companies wants these costs to be stagnant for the whole year so as to lower down the cost ...