ACC 202 Module 7 Investor report

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School

Bossier Parish Community College *

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Course

202

Subject

Accounting

Date

Apr 3, 2024

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docx

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Uploaded by patriciawood2017

Report For Scarborough & Sons Pet & Paws, LLC Investor Report for Scarborough & Sons Pet & Paws, LLC James Scarborough Southern New Hampshire University 08/12/202 1 | P a g e

Report For Scarborough & Sons Pet & Paws, LLC Introduction Scarborough & Sons Pet & Paws, LLC was created and passed down in our family from generation to generation. The future of Scarborough & Sons Pet & Paws, LLC; depends on our customers, community, and we take pride in everything we sale. We are a locally owned company that sales high quality pet leashes, collars, and harnesses for all kinds of pets such as dogs, cats, exotic species, and birds. I chose to broaden my products because I know how pet owners feel when they walk into a store with limited selection for their pets. I chose these products to focus on because I feel like my company would make the highest profit margin off these three products based on reviews of high demand for these products in my local community. My vision for my company in the future is to be able to not only provide high quality products locally but to expand my business internationally. Sense I have already branched out and broaden my product selection to other species, I would like to expand to other regions that are known for exotic species and a higher demand of need for pet supplies for those species. Once, I am successful with my expansion I would invest in opening an online store as well so my customers wouldn’t have to leave the comfort of their own home to shop for pet supplies. My goal for my future company is to make sure my profit margin stays in the positive while adding more products to my product line as well. My goal with my expansion is also to build more of my clientele. I predict to not only have my expansion completed along with my online store up and running but to also have a second store in another location in the process of up and running. Purpose 2 | P a g e

Report For Scarborough & Sons Pet & Paws, LLC The purpose of this report and what I hope to convey about the company and its financials is that I would like to show other business owners that are starting out in the business world, easier ways to keep a positive margin along with successful business decisions that can be made along with the thought process behind these financial decisions and how successful companies can be in the first month if they follow these steps when making decisions for their company. I plan to show investors and stakeholders why investing in my company would not only be a great idea but a successful idea. I plan to communicate in the first part of my investor report my planning process and the steps I took to arrive at the decisions I made for my investments and how I came up with my cost system for our products, the sell prices for the individual products based on species and size, my target profits for the year and contribution margins goals. The provided information is important to business owners and customers entering the business world in order to execute a successful business plan and establish a working routine for your business. These plans will not only show you how to plan for a positive profit margin but how to maintain that margin by shopping for less expensive material and choosing a company that offers the best rates on their materials while being able to cut costs in areas that could affect your profit margin. The second part of my investor report will show you all the numbers in our first month of business and how we were able to maintain a profit margin while operating our business. These numbers will be from our statement of goods sold, variances, income statements along with the significance of these variances and how they showed a positive profit margin in the first month of our business. 3 | P a g e

Report For Scarborough & Sons Pet & Paws, LLC Methods and Approach Some of the management accounting methods I used to determine my costing strategy was by evaluating my financial information and the impact it had on my profit margin along with the forecasting and contribution margins as well that played a role in helping me determine my costs and which strategy would be best to use. We also took our statements of goods sold along with our income statements and variances to factor in our financial information and review the impact it would have on our profit margins. All these methods we used support the mission and vision of the company by keeping true to our mission statement which was to make sure all demands of the customers were met and meeting our revenue quota at the same time by allowing our product to get to the customers on time without delay and helping increase our revenue at the same time. Our vision of our company is expanded internationally, open online stores, and expand locally by being able to open more stores in different regions in the United States. These methods used help push forward to making our vision of our future come true while financially maintaining and prospering by not increasing the prices of our products but being able to push more products in order to maintain our customers’ needs and demands. My report and the data of my investor report adheres to industry standards and the AICPA code of ethics by using calculations from my financial information gathered to deliver correct and true data to potential investors. At our company Scarborough & Sons Pet & Paws, LLC; we know the importance of following the laws and adhering to AICPA code of ethics in and out of the workplace along with the principles that should be followed to make sure these investor reports are accurate and true so that all investors and stakeholders understand and know 4 | P a g e

Report For Scarborough & Sons Pet & Paws, LLC that our future investment at Scarborough & Sons Pet & Paws, LLC is legit, accurate, and has potential to be a great investment. Financial Strategy Costing System The job order costing system works best for our business because it helps us determine the costs for each individual product, we sell along with the estimate of the sale price based on how many we predict to sell. The use of job order costing for this business is better tool to use over the process cost system because we are a new business so we need to be able to analyze all our options at different prices to determine which would be more beneficial to our whole company as one instead of breaking down each department and having to analyze those as well. We need to be able to determine the product cost for each product we sell and how its contributing individually to our contribution margins. Once these prices are determined, we can then take those induvial costs and adjust them to fit our needs and the customer needs as well or even decide to discontinue that product because its no longer beneficial to the company or making a profit. If we decided to use the process cost system over the job order costing system, then we would not be able to see analyze all the individual prices for each product which could affect our profit margins in the long run and cause us to miss out on opportunities to increase our revenue and profits. Selling Prices 5 | P a g e

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