Financial Analysis Essay Example | Topics and Well Written Essays - 1500 words - 1

Financial Analysis - Essay Example The global systems insurance agency start-up budget was $2,345,000 which entails four critical sections that must be available for the implementation process of the project. Employees and payroll taxes amounted to $1,600,000 under administration costs. The start up of this sophisticated business project called for different kinds of skills and expertise in the field of technology to enable the implementation of this project successful. Their efforts and sacrifice of their time were compensated in monetary value. The computers, repairs, services, maintenance and depreciation accumulated to a cost of $98,000. Due to unfavorable conditions that some computers were in, more computers were purchased and upgraded to improve technology of the SYPRO softwares. Their implementation cost was $597,000 which was broken into specifications of online software cost $500000, testing cost $60,000, training cost $25000, and SYPRO support $12000. In the standard preparation of budgets, there is always a provision for miscellaneous expenses that might be incurred and, therefore, a total of $50,000 was catered for these expenditures. The above costs were only budgeted for the beginning year of 2014. The figure below shows the start up Budget for the first year. Our respective income and expense statements replicate our financial positions of a year before the implementation of the SYSPRO software. They also clearly show a year prior to the implementation and the financial positions of the three years to come. It should be known that the projection of the future financial positions of subsequent years was based on the present performance data for financial analysis. For an efficient and sufficient implementation of the SYSPRO softwares, an ample start-up capital is required for the research and development expenses. Our initial capital for the SYSPRO implementation was $597,700. The