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Calculation of Net Income and Cash Flow - Essay Example

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This essay "Calculation of Net Income and Cash Flow" focuses on an internet-based translation Company that provides translation services online. We deliver outstanding and fast translation services to our clients. Languages include English, Japanese, Chinese, German, French, etc. …
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Calculation of Net Income and Cash Flow
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Bocheng Wang 100909963 Ruopeng Wei 100901352 Feilong Zhuo 100852941 Samaria Dekho 100616775 Contents About Us……………………………………………………………………3 Executive Summary……………………………….………………………..4 Management Team…………………………………………………………5 Market and customer……………………………………………………….6 Service and Charge…………………………………………………………7 Market Share………………………………………………………………..9 Calculation of net income and Cash flow……………..……………………10 Calculating Market share………………………….………………………11 Why choose us……………………………………………………….……16 Our role in international trade……………………………………………17 Reference…………………………………………………………………19 \ E-Translate About us E-Translate is an internet-based translation Company which provides translation services online. We deliver outstanding and fast translation services to our clients. Languages include: English, Japanese, Chinese, German, and French, etc. Established in January 1, 2011, we provide 24 hours online translation service. We believe that our company has created an amazing platform, where people can easily choose among our services and latest deals. Of course we cannot achieve our goals without the help of our hard-working translators, who are always aiming for new challenges. Relative to other companies, we provide a flexible way of working, employees can choose a time to finish the work at home. In addition, our company also saves on the cost of renting office space and daily maintenance. This is because our devoted staffs are allowed to carry out their tasks in the comfort of their houses. In this case, the company makes provision for all logistic requirements to facilitate workers in their day to day activities. Our services are ISO certified and hence we offer world class translational platform with adequate security and monitoring to enhance integrity and trust among our client. \ Executive Summary The world’s economic system is fast changing due to the roles that international trade and investment is playing in the system of economic development. Due to cultural and language barrier in terms of trade, investment and cooperation, emerging concepts of translation services has led to a number of successful international trade negotiations. Consistent with the long-standing predictions, available data reveals an increase in international trade negotiations across the globe. Many States and policymakers have already recognized the importance of cultural competence in facilitating effective communication during negotiations. Internet-based translation has become increasingly popular even though a pivot translation service is required to fully realize the translation between non-English languages through cascading different translation services. It is with great effort that e-translate have made it their priority to develop a content-based coordination that aims at maintaining the consistency of the word meaning during the translation services. The number of languages used in internet has shown a rapid increment. For instance, those using English comprise of 40 percent of all the internet users, Asian language users represent 26 percent, European language users represent more than 30 percent excluding English users, while other languages users represent nearly 20 percent. This trend has a greater influence on the requirement of translation services among non-English language users, as well as between English language users and non-English language users. E-translate is glad to provide a multi-agent architecture for translation services to its clients. The services provided by e-translate are well coordinated through an in-built functionality that makes languagespecific processes or decisions. Management Team The management team if e-Translates combines the experience of individual with extensive background in language linguistics as well as those who have succeeded in developing successful business within the framework of the internet industry. The company currently has one senior executive. Additionally, the company has a number of support staffs who ensure the smooth running of the process to the clients. The company will hire full time staffs in the future to help in full implementation of business’s objectives and functions. The company is headed by able men and women carefully selected to enhance efficiency and quality in delivering our services. On the top most rank is the chief executive officer who manages the entire company. The CEO is in charge of both internal and external affairs of the company. All matters relating to e-translate are handled in this office. Other managers include the finance manager who is in charge of finance, human resource manager who manages the human capital and the operations manager who ensures that dairy activities are ran smoothly. Market and Customer With the expansion of international traffic, more and more international deals need professional translation. E-Translate target this potential market. We can work for multinational companies to provide professional translation of trade documents or contracts. Going global with your business will predictably raise the need for business translation services in order to successfully communicate with foreign business partners and understand foreign consumers and international regulatory framework. Moreover, there is a variety of legal and financial documents that will need to be accurately translated using proper terminologies, accent and originality. At the same time, we are also available for private services. With the immigration to Canada on the rise, more people will be needing help with the translation of documents. We are able to translate private files or works into many different languages. It is significant for international business people to understand that anytime they append their signature on a transaction document, they are deemed to have agreed to abide with the terms and conditions stipulated in the document. This makes our translational services very important as it would be suicidal to commit to terms a business person does not fully understand. We are dedicated to providing our client with accurate and timely translation service. Service and Charge Number of Words English Japanese, Chinese, German, French, Russian Every 1000 words (Price in Canadian Dollars) $100 $120 - $240 http://translate.gengo.com/price-free/?utm_source=GOCA&utm_medium=cpc&utm_campaign=Website_Translation-Geo_CA-Exact-GP&gclid=CPPZ5fDUocQCFYNAaQodWVAAsQ Once per capita sales have been determined, this number can be applied to the market area population. Toronto= Population × Per capita sales = 5,000 × $ 0.00071692 = $ 3.5846 Outlying area= Population × Per capita sales = (490,000 – 5,000) $ 0.00071692 (Total market – Toronto) = 485,000 × $0.00071692 = $347.7062 Since only 30 percent of people in the outlying area made their purchases in Toronto (primary research), multiply this figure by 0.3: $347.7062 × 0.3 = 104.31186 Total market potential = $1,638.75+ $104.31186 =$1743.06186 3. Adjustments. Typical adjustments might include updating secondary information regarding population and purchases by applying past trends. Market Share 1. There is one office department in Toronto, with a total estimated size of 90 square meters. (Primary research collected by observation.) 2. Size of the proposed office is 20 square meters. 3. Calculation of market share. Percentage share of the market: 4. The percentage of market share would probably have to be decreased slightly,because the proposed business is new and would not have built up clientele and the reputation of an existing store. Based on the above factors, market share has been adjusted to 12 percent. 5. Multiply market share percentage by the market potential. Market share × Market potential = Estimated market share 12% × $1743.06186 = $209.1674232 Therefore, market share is approximately $200. Calculation of Net Income and Cash Flow NEW LOCATION Projected Income Statement For the Period Ended December 2011 $ Sales 200 COGS 94 GROSS MARGIN 106 FIXED ADMIN COST 44 MARKETING 17 PROFIT Profit 45 Once per capita sales have been determined, this number can be applied to the market area population. Toronto= Population × Per capita sales = 25,600 × $ 0.00083 = $ 21.248 Outlying area= Population × Per capita sales = (510,000 – 25,600) $ 0.00083 (Total market – Toronto) = 484,400 × 0.00083 = $402.052 Since only 30 percent of people in the outlying area made their purchases in Toronto (primary research), multiply this figure by 0.3: $402.052 × 0.3 = 120.6156 Total market potential = $2124.8+ $120.6156 =$2245.4156 3. Typical adjustments might include updating secondary information regarding population and purchases by applying past trends. Calculate Market Share 1. There is one office departments in Toronto, with a total estimated size of 90 square meters. (Primary research collected by observation.) 2. The size of the proposed office is 20 square meters. 3. Calculation of market share. Percentage share of the market: 4. The percentage of market share would probably have to be decreased slightly, because the proposed business is new and would not have built up clientele and the reputation of an existing store. Based on the above factors, market share has been adjusted to 12 percent. 5. Multiply market share percentage by the market potential. Market share × Market potential = Estimated market share 12% × $2245.4156 = $269.449872 Therefore, market share is approximately $270 NEW LOCATION Projected Income Statement For the Period Ended December 2012 $ Sales 270 COGS 127 GROSS MARGIN 143 FIXED ADMIN COST 49.24 MARKETING 19 PROFIT Profit 74.76 Once per capita sales have been determined, this number can be applied to the market area population. Toronto= Population × Per capita sales = 31,000 × $ 0.00093 = $ 2883 Outlying area= Population × Per capita sales = (523,000 – 31,600) $ 0.00093 (Total market – Toronto) = $457.002 Since only 30 percent of people in the outlying area made their purchases in Toronto (primary research), multiply this figure by 0.3: $457.002 × 0.3 = 137.1006 Total market potential = $2883+ $137.1006 =$3020.1 3. Typical adjustments might include updating secondary information regarding population and purchases by applying past trends. Calculate Market Share 1. There is one office departments in Toronto, with a total estimated size of 90 square meters. (Primary research collected by observation.) 2. The size of the proposed office is 20 square meters. 3. Calculation of market share. Percentage share of the market: 4. The percentage of market share would probably have to be decreased slightly, because the proposed business is new and would not have built up clientele and the reputation of an existing store. Based on the above factors, market share has been adjusted to 12 percent. 5. Multiply market share percentage by the market potential. Market share × Market potential = Estimated market share 12% × $3020.1 = $362.412 Therefore, market share is approximately $2,000. NEW LOCATION Projected Income Statement For the Period Ended December 2013 $ Sales 362 COGS 170 GROSS MARGIN 192 FIXED ADMIN COST 56 MARKETING 22 PROFIT Profit 114 Our importance in international transaction Globalization has changed the entire world into a small village where people from different parts of the world and walks of life meet on various platforms for business transactions. In this case, a Chinese businessman will sell his merchandize to a British business woman or another French trader. In this situation, huge sums of money are involved. In addition there exist some forms of contracting in these transactions. Since none of them will understand other language apart from native one, we as the e-translate will come in and help you to analyze contracts in different languages form yours. In this case, we shall ensure that we put transactions terms and conditions in the language you understand best. This will ensure that you will make concise decisions based on complete understanding of information. With a multitude of technical, legal, medical and patent interpreters and translators situated all over the world, our customers can receive locally-speaking expert language services pertinent to the nation of your consumers’ choice. Not only will this ensure precise regional and dialect considerations, but also cultural and intellectual sensitivity. Whether it is technical interpretation, translation, web site localization or software, voice-over, patent translation or another language-related service that your company is looking for, we are here to help! Our main motivation is the eradication of language barrier that has frustrated traders across the world. We make individuals with diverse language to meet and do transactions with complete understanding of the context. Reference James C., international trade made easier; York: Collins Business Essentials, 2002. Print. Read More
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