Financial Accounting of Everest Computer Technology

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Running Head: FINANCIAL ACCOUNTING Company Overview Everest Computer Technology (ECT) is a new business venture that will focus on the computer hardware and services. The ECT aims to increase the sales by more than $8 million within three years and the strategy is to deliver the underlying value to customers, which will assist the company to improve its gross margin on sales, working capital and cash management. The business plan reveals the systematic strategy to be adopted in improving our sales, profitability and gross margin. To realize our aims and objectives, ECT plan to raise a loan of $100,000 from a bank to finance our project. More importantly, ECT will deliver its product and services to the small and home businesses across the United States. The company will also deliver network services for both small and medium businesses. The services that the company will deliver will include design and installation of the network systems, the training and support for businesses across the United States. With the business strategy that the company intends to adopt, the ECT will: Increase the gross margin to more than 35%. Increase the total sales of non-hardware to 25% within three years. 1.1 Objectives Increase the sales to more than $9 million within the three years. Increase inventory turnover to 6 turns with two years. Product and Services The rational for choosing computer hardware as the company product is that computer has revolutionized the world.

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