Analyzing Market Situation and Financial Statements for Optometry Business: Accounting Capstone

In this assessment we will discuss about accounting capstone and below are the summaries point:- The assessment analyses the market situation for a start-up optometrist business. It covers operation, management, administration, and financing aspects of the business. The management follows a low-cost business model, and financial statements are forecasted.

Running head: ACCOUNTING CAPSTONE
Accounting Capstone
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The main purpose of this assessment is to analyse the market situation for the business which is
at the initial stages of planning. The assessment covers the business of optometrist which would
be providing optical solutions to the customers and also state the vision and mission of the
customers of the business. The assessment would also be including operation, management,
administration and financing part of the business. The management would also be following a
low-cost business model for the purpose of enhancing the revenue of the business. The
assessment would be forecasting the start up expenses of the business and also forecast the
financial statements of the intended business.

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Table of Contents
Business proposal, research and analysis........................................................................................4
Operations......................................................................................................................................10
Product Description and Uniqueness.........................................................................................10
Customer Satisfaction Survey....................................................................................................10
Customer Billing process and Accounting................................................................................11
Sales Techniques and Incentive.................................................................................................11
Marketing Practices...................................................................................................................11
Warranties and health requirements..........................................................................................11
Suppliers and Credit Options.....................................................................................................12
Pricing and Costing Strategies...................................................................................................12
Business Location......................................................................................................................13
HR Policies and Rewards and recognitions of employees........................................................13
Analysis of Mission and Vision and costs of the business........................................................14
ATO and Other Regulations......................................................................................................14
Administration...............................................................................................................................14
Business Location and Rental Requirements............................................................................14
Utilities and IT facilities............................................................................................................15
Staff Types and Roles................................................................................................................15
HR policies................................................................................................................................16

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Process and Activity Analysis...................................................................................................16
Advertisement and Promotion...................................................................................................16
Accounting system.....................................................................................................................17
Management..................................................................................................................................17
Business Registration.................................................................................................................17
Management hierarchy..............................................................................................................17
Strategic Tools which is used by the business...........................................................................17
Risk Assessment........................................................................................................................18
Financial........................................................................................................................................18
What if Analysis and Sensitivity Analysis................................................................................21
Start Up Expenses......................................................................................................................23
Breakeven Analysis...................................................................................................................24
Financial Analysis.....................................................................................................................24
Reference.......................................................................................................................................27

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Business proposal, research and analysis
Vision
The main vision of the business is aimed at fulfilling the requirements of clients by
offering exclusive and best in-house lenses produced by proposed business named Clear Vision
Optical. The vision the business is aimed at delivering the best services to the customers by
making the best use of state of art technology thereby fulfilling the needs of the clients.
Mission statement
Clear Vision Optical aims at becoming one of the global leaders in providing pioneering
optical solution at an affordable price.
Description of idea
The main idea for Clear Vision Optical will be based on operating at low profit and low
risk margin owned by Mr. Silvia Presley who has more than 15 years of experience as a licensed
optician. It needs to be understood that the business considers patient requirement with highest
priority. The initial opening of the business will be consisting of one store located in suburb of
Merrylands in Sydney. The business will aim at opening more shops in the next five year. The
exclusive right for the store will be given to Lucas Murray. The overall idea of the store will be
based on keeping moderate to high end optical items. In addition to this, it will also include
introduction of well-known brands such as Versace, Ray ban and Gucci. The overall expected
sale is seen to increase significantly over the next two years from its operation (Kim 2018).
Industry analysis, trends, growth opportunities

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The optical market in Sydney is expected to have a steady growth in 2019. The main
sales will be driven by ageing population and the growth will be driven by vision correction,
marketing campaigns and launching of new products of leading brands. In addition to this, the
optical market will also comprise of several number of people with myopia and presbyopia. The
overall balance of myopia for the people in Sydney is expected to significantly increase
compared to the last decade. This is mainly due to increased use of electronic devices and less
time spent in outdoors. The most notable global competitor for the brand can be identified with
Luxotica which is a leading seller of sunglasses and other eyewear products (Kiely and Slater
2015).
As per the depictions of the industry it can be clearly inferred that 75% of the optical
stores in Sydney are owned independently. The overall anticipation of such a market is depicted
to be positive in the next five years thereby supported with favourable demographic trends.
Economic and regulatory environment (and assessment of any barriers to industry entry)
The economic and regulatory environment of doing business in Sydney is comprised of
business regulations which is designed to ensure fair competition, integrity and sufficient
protection for the relevant parties. The applicable regulatory environment for social business in
Sydney will be based on Australian intellectual property laws, Australian business and
environmental laws, financial reporting in Australia and Australian business and Australian
export and import laws (Gibson 2016).
Competitor and market analyses- Target market, competitors
As per the report of IBIS world can be clearly inferred that the optometry and optical
dispensing industry has been contending with a tough competition in the last five years. Several

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corporate players have continued with online competition which has influenced on increasing
performance in the industry. The overall report has been able to suggest that in increasing price
wars have pushed the prices to lower level as both online and bricks and mortar optometry chains
have contested for a greater number of consumers seeking for competitively priced eyewear. The
most notable global competitor for the brand can be identified with Luxottica which is a leading
seller of sunglasses and other eyewear products. Some of the other competitors within the
industry can be identified with Specsavers. The existence of such players in the market can be
considered as the main threat for the business (Westheimer 2016).
The market analysis further shows that the distribution of industry enterprises are in line
with lesser extent of ageing profile with optimum household income. Additionally, the
geographic distribution of optometrists has also impacted on the location of the shops across
Sydney. However, as the business is mainly focused in the suburbs of Sydney, it is focused
towards driving the demand of people living in such areas rather than urban areas where most of
the optometry practices are done (Jong et al. 2018).
The target customer will range from demographic groups in Sydney demanding for
frames, lenses, sunglasses and spectacles. The age group for children will range from 6 to 13
years while the age group for adult customers will range from 18 to 40 years. However, the main
demand for such a product will be generated by individuals with his group of 45 to 70 years
(Barrett et al. 2018).
Competitive strategy, goals
The key success factors for dispensing the competitive strategy goals should be mainly be
based on the following three ideas namely:

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 Driving effectiveness through product promotion
 Proximity to key markets
 Being a member of buyers group and promoting several types of marketing schemes
Some of the different types of external factors such as private health insurance membership
and median age of population in optometry can also significantly impact in dispensing the
appropriate competitive strategy for the business (Wilson 2015).
Competitive advantage, its source, why the idea/ product is unique, will work
It is to be noted that Clear Vision Optical will be consisting of certain unique selling
propositions which shall differentiate them from the competitors:
The manufacturing of high-quality products at a lower price will be the main USP of the
business.
 Such a USP will be followed by setting lower price for products such as lenses, frames
and sunglasses to ensure appropriate eye care solution to every class of customers.
 High stability and colour of sunglasses will be depicted as another unique feature as the
products will not be hampered by pollution, rain or sunlight.
 The lens and sunglasses will block harmful UV rays (Gyawali and Moodley 2018)
Market research
As per the industry statistics and market size and the total revenue generated in Australia
for such a business is identified with $ 4 billion. Then will growth rate from 2014 2019 is
protected with 2.9%. In addition to this, total employment generated is seen with 16,416 and

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total businesses comprise of 3219. The likely increase in the projected sales volume is expected
to grow by an additional 3.4% in the next five years (Roman 2017).
Marketing strategy
Under the marketing strategy Product features for the business will comprise of design
where, lenses and accessories. The designed wear will encompass of various types of sportswear,
frames and sunglasses. This will be noted with different styles and sizes of frames as part of the
taste and preference of the customers. The lenses provided by the business will range from
Contact lens and ophthalmic lens. The accessories will include solution for lens, lens coating
material and anti-coatings which will provide easy cleaning along with Teflon coating. The
pricing strategy will be mainly focused with affordable pricing which will aim at middle to lower
income earning individuals. Due to such a focus, the main strategy will be adopted by market
penetration pricing which will allow the company to initially set the prices at a lower level for
the products. The type of service is offered to the customer will be comprising of eye exam,
professional services and insurance billing. The eye exam will assist in recognising general
health condition and the customer will be detected via eye exam. Furthermore, it will include
referrals to specialists and help in managing the post eye surgery health. The different types of
professional service will include the service provided by independent optometrists. The
insurance billing will have dedicated to 2 windows for lenses, sunglasses and designer frames
(McNeill 2016).
The promotion and advertising and plan will be mainly relied on traditional advertising
revenues such as television, radio and newspaper. The company will also make the best use of

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Internet and social media such as Facebook, Instagram and Twitter to promote its eyewear
products.
Business core values
The core business values will comprise of pride, tradition, long-term relationships, trust
and corporate citizenship. The pride factor will include employers taking initiatives in supplying
vision care products, designing and making the best eyewear. The trust factor will be created by
focusing on improving people’s life by providing superior vision care options. The building of
long-term relationship will ensure enduring customers with employees and suppliers for better
service. The corporate citizenship factor will be built on being a good corporate citizen for
treating the communities and environment fit utmost respect (Haddadi et al. 2018).
Broad business objectives
The broad business object is identified with the following points
 Working as a team of dedicated and right people who can prescribe the best eyewear
solution
 Being easily approachable as an eye care practitioner
 Continually pushing to improve the products and building relationships with the
customers (Rathod 2017)
Operations
Product Description and Uniqueness
The management of the company has planned to offer the best quality of optical products
which are available in the market and would also be offering lenses from famous brands so that

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the business can enhance the revenue of the business. The business is based on the expertise of
Paulina who is an experienced optometrist and would be relying on the talents and other
optometrists. Therefore, the business would be providing advisory check-ups, medical
examination, treatment of disease and also prescribe optical lenses for the benefits of the clients.
This would provide the customers one stop destination for solving their problems. In addition to
this, the business would be appointing experienced optometrists so that ample advice and care is
taken of the customers of the business (Sadgrove 2016). In an overall estimate, the product
combined with service would give an edge to the business over other companies/
Customer Satisfaction Survey
As per the polices which is formulated by the management, the business would be
keeping the needs of the customers foremost and ensure that they do not face any kind of risks
from the products which is offered by the customers. The business model of the company is
developed for maintaining low risks and low costs of the business (Uhl and Gollenia 2016)(.
Therefore, it can be said that the management considers the satisfaction of the customers as
important component of the business.
Customer Billing process and Accounting
The management has made plans that the products which are offered by the business are
billed separately while the services of the doctors would also be billed separately. This is
undertaken by the management in order to ensure efficiency in reporting framework. This would
also segregate the revenue generated by the business and assist the accunting process.

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Sales Techniques and Incentive
The sales strategy of the business involves selling the best quality of products at cheapest
price which itself would attract new customers to the business. The optical products which are
referred can be purchased from the same shop. In addition to this, the management would also be
engaging in effective advertisement to make the company knows among the customers.
Marketing Practices
The management of the Vision Opticals aims to extensively promote the products and
services which is offered by the business. The management would be promoting the products and
name of the company with the help of social media and television media and the intention of the
business is to reach out to a wide range of customers in the market.
Warranties and health requirements
The management of the business considers the health of the customers to be of utmost
priority and therefore the management would be using only those optical lenses which are
certified to be appropriate and which will not harm the public in any way (Dumas et al. 2013).
The lenses which would he offered would have a period of warranty which would vary from
product to product. In addition to this, the management needs to meet registration and health
standards requirements which are applicable in the country.
Suppliers and Credit Options
The management of the company would be entering into tie up agreements with lens
making company for the supply of lenses and the stock would be purchased on consignment

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basis which would be credit. The credit facility would help the business in the start up and
therefore the management is considering the same.
Pricing and Costing Strategies
The management plans to apply the tool of benchmarking for understanding the market
price range which is charged by the competitors of the business. The management plans on
adopting the low-cost model so that customers can be attracted to the business. Public health
would be given priority but the products would also be cost effective and therefore appropriate
for the customers. In order to keep the prices of the products which are offered by the
management, the business would be focusing on cost reduction policies and cut out all the
unnecessary costs which are associated with the business (Karanja et al. 2013). These steps are
undertaken by the management of the company so that potential customers can be attracted to the
business. The business would be adopting an appropriate costing model to deal with overheads
of the business.
The distribution and marketing costs of the business would be high as initial promotion of
the product and service which is offered by the business needs to be done appropriately. The
management is using all medias for promotion of the product therefore the marketing cost would
be high. The products can be purchased from the store directly or even ordered online for which
the business would be having delivery trucks to deliver the products to the customers.
Business Location
The company would be established in such a location which has access to maximum of
crowd in the country and therefore can attract more and more customers for the business. The
management of the company has a store location in mind which would be considered and taken

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on rent for a particular period as per the term of agreement. The management need to meet
maintenance expenses and registration initially but is of the opinion that the street location would
give them access to customers more and with the help of street advertisement the business can
get the attention of the customers.
The utilities and assets which would be required are bit on thee costly side as they are
optometrist equipment and other basic assets which would be required at the start of the business.
The basic assets which would be required by the business are included in the start up costs of the
business.
HR Policies and Rewards and recognitions of employees
The store would not be requiring much employees and would be comprising of the store
manager, support staffs, delivery guys, salesman and optometrist. Paulina would be the owners
but she would also be recruiting new optometrist to help out with the business. The business
would also be needing delivery man for supplying the products to customers who have ordered it
online. The sales person are employee who would promote and even sell products om door to
door basis for which commissions would be given to them if they achieve their sales target. The
optometrists would also be given commission on more and clients as they diagnose. There
would be rewards given to employees on the basis of performance every month.
Analysis of Mission and Vision and costs of the business
The management of the company has made it a vision to serve customers as many as
possible and provide the best quality of services to the clients of the business. The mission of the
company is to become the global leaders in providing optical solutions in the region. The
management also plans to expand the scale of operations of the business in a five year’s time

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period. The management also aims to ensure that the costs of the business are kept at low at all
times so that the business is able to attract more and more customers.
ATO and Other Regulations
The management of the company needs to meet the regulations which are applicable in
the country and also require to meet the requirements which are presented by the Australian Tax
Office. The management needs to adhere to registration and other requirements for ensuring that
overall market conditions are considered.
Administration
Business Location and Rental Requirements
The management of the company has decided to choose a location which would attract
maximum of the customers and ensure that the revenue which is generated by the business is
appropriate. The management need to meet maintenance expenses and registration initially but is
of the opinion that the street location would give them access to customers more and with the
help of street advertisement. The management would be taking the property on rental basis and
therefore need to consider the initial rent expenses of the business appropriate.
Utilities and IT facilities
The business would be offering optical diagnose and optical products to the customers of
the business. The business would be offering utilities that free check up, eye power test and
many other facilities so that the customers are motivated towards the products which are offered
by the business. The business would be utilizing the best technology so that the overall services
which is offered by the business of of the highest quality and can attract more and more

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customers to the business. The management also aims to set up new stores once the intended
business become successful in the market.
Staff Types and Roles
The main staff requirement for the business are the optometrists, support staff, cleaners,
delivery man, store manager. The management would be setting up chambers and different
rooms so that the optometrists are able to separately diagnose the customers as per their
requirements and meet their expected standard. The store would be offering eye drops, optical
instruments and lenses to the customers after the diagnose or even to customers of new origin.
The management of the company also expects that it would be taking online orders for optical
products and make delivery for the same to the customers of the business. Paulina plans to
ensure that the optometrists who are recruited to the business are competent and have necessary
experience for meeting the requirements of the customers. The management would be recruiting
sales personnel in order to ensure that the revenue and sales can be enhanced further and new
customers can be brought into the fold.
HR policies
The management of the company plans to ensure that the HR policies which are set by
the management of the company are appropriate and meet the requirements of the employees.
The employees need to be kept motivated so that they can perform better. The business plans to
offer rewards and recognition to employee who have performed the best during the month. They
would be getting some monetary compensation or leave as a reward. The remuneration of the
optometrists would be higher than any staff members which would motivate them to ensure that

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best diagnose is provided to the customers of the business. The management also plans to recruit
appropriate employees who are competent to the needs of the customers.
Process and Activity Analysis
The process and activity of the business is dependent on the diagnose conducted by the
optometrists and the appropriate optical lenses are provided for treatment. Similarly, the business
would also be offering products to the clients who are new. The management would also be
delivering the products to the customers who have ordered in online.
Advertisement and Promotion
The management plans to spent extensively on the promotion of the products which is
offered by the business. The management plans to advertise the products in all media so that
more and more customers can be reached out and appropriate revenue can be generated from
such customers. This forms part of the marketing costs of the business and the management has
formulated an effective marketing strategy so that more and more customers can be attracted to
the business.
Accounting system
The management of the company plans to implement an accounting information system
so that the business can appropriately account for all expenses and revenues which is generated
by the business. The management has developed a financing planning which would be focusing
on all relevant aspects of accounting.

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Management
Business Registration
The management needs to appropriately set up registration of the business so that the
business adheres to the rules and regulations which are applicable to the country. The business
would be having a definite APN number which would be available to the business once the
business is registered.
Management hierarchy
The management would be management by Paulina and the board which would be taking
all the major decisions would comprise of Pauline and other optometrists who are appointed in
the business. They will be forming the top level management of the business and the store
manager and other support staff forms part of the mid level management of the business
(Clinton, McQueen and Mandal 2013). The sales staff and cleaners are at the grass root level of
the management. All the major decisions are taken by Paulina so that a unity of direction is
maintained in the management of the company.
Strategic Tools which is used by the business
The management of the company would be applying strategic tools for the purpose of
taking major decisions for the business. Such tools would be including SWOT analysis for the
purpose of conducting internal and external analysis of the business. The management also plans
to follow a balanced scorecard approach so that the business is able to appropriate optimise the
activities which are to be carried out by the management of the company.

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Risk Assessment
The major risks which the business faces is from the competitors of the business and
therefore the management has decided conduct competitive analysis along with benchmarking so
that the strengths and weaknesses of the competitors are established and can be used against
them. Another risks is the regulations which are applicable on such businesses.
Financial
(1) SALES FORECAST
Year 0 1 2 3
Projected Sales 60,000 66,000 72,600
(b) Cost of goods 30,000 33,000 36,300
(2) CASHFLOW FORECAST
Preop
Year 0 1 2 3
CASH INFLOWS
Cash from Sales 60,000 66,000 72,600
Directors loans 45,000 45,000 45,000 45,000
Capital Employed 125,000 150,000 165,000 181,500
Other cash inflows
TOTAL CASH INFLOW 170,000 255,000 276,000 299,100
CASH OUTFLOWS
Payments for materials 30,000 33,000 36,300
operating expenses ( ) 0
Premises (rent, rates) 0 5,000 5,250 5,513
Salaries 0 6,000 6,300 6,615
General expenses 0 100 105 110
Interest and bank charges payable 0 4,500 4,500 4,500
Lease payments 0 2,500 2,625 2,756
Corporation Tax 3,000 4,388 5,102

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Market survey costs 0 500 525 551
Other preliminary expenses 0 1,000 1,050 1,103
capital expenditure
Plant and other capital expenditure 0 5,000 5,250 5,513
financing repayments
Loan repayments 11,250 11,250
TOTAL CASH OUTFLOWS 0 57,600 74,243 79,312
Cash flow summary
NET CASHFLOW FOR PERIOD 170,000 197,400 201,758 219,788
OPENING CASH BALANCE 0 170,000 367,400 569,158
CLOSING CASH BALANCE 170,000 367,400 569,158 788,945
(4) PROFIT AND LOSS FORECAST
Preop
Year 0 1 2 3
Revenue 0 60,000 66,000 72,600
Cost of sales 0 30,000 33,000 36,300
Gross profit 0 30,000 33,000 36,300
Gross Margin 53,000 55,763 60,696
Expenses/overheads
Premises (rent, rates) 5,000 5,250 5,513
Wages and salaries 6,000 6,300 6,615
General expenses 100 105 110
Accountant Fees 500 525 551
Payroll Tax 400 420 441
Utilities 1,200 1,260 1,323
Sales and Marketing 3,000 3,150 3,308
Postage & Telephone [phone]
Repairs and Maintainance 100 105 110
Preliminary expenses 1,000 1,050 1,103
Lease Payments 2,500 2,625 2,756
Total expenses/overheads 20,000 18,375 19,294
Profit before tax 10,000 14,625 17,006

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Tax @ 30% 3,000 4,388 5,102
Before tax net margin 17% 22% 23%
Profit after tax 7,000 10,238 11,904
Transfer to reserves 7,000 10,238 11,904
Particulars Year 1 Year 2 Year 3
Return on Investment 2.37% 6.83% 7.21%
Year 0 Year 1 Year 2 Year 3
(a) Total Initail Investment
Initial Equity Investment (Equity) 150,000 165,000 181,500
Debt (Bank Loan) 45,000
Repayment 0 11,250 11,250
Sale Forecast
Projected Sales 60,000 72,000 86,400
Market Penetration 20% 20%
(c) COGS 30,000 36,000 43,200
(d) operational AND Direct
Expenses
Rent of Premises 5,000 5,250 5,513
Salary and Wages 6,000 6,300 6,615
Accountant Fees 500 525 551
Payroll Tax 400 420 441
Supplier contracts 1,200 1,260 1,323
Sales and Marketing 3,000 3,150 3,308
Postage & Telephone [phone]
Brouchers 100 105 110
Logo Designs 100 105 110
Interest on loan 10% 4,500 4,500 4,500
Market survey 500 525 551
Preliminary expenses 1,000 1,050 1,103
Lease payments 2,500 2,625 2,756
(e) FIXED ASSETS
Equipments 20,000 21,000 22,050
Building and Clinique Centres 45,000 47,250 49,613
Utensils 5,000 5,250 5,513

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What if Analysis and Sensitivity Analysis

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Figure 1: (Chart showing financial summary)

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Start Up Expenses
Start-up Expenses
Fixed Costs Particulars Amount ($)
Premises $5,000
Salaries $6,000
Interest on loan 8% $4,500
Accountant Fees $500
Payroll Tax $400
Retainer contracts $1,200
Sales and Marketing $3,000
Postage & Telephone $200
Brouchers $100
Logo Designs $100
Market survey $500
Preliminary expenses $1,000
Lease payments $2,500
Total Fixed Costs $25,000
Rent $417
Lease payments $208
Interest on loan 3% $375
Postage & Telephone $17
Repairs and Maintainance $8
Salaries / Wages $500
Total Average Monthly Costs $1,525
x Number of Months: 12
Total Monthly Costs $18,300
$43,300
Start-up Assets
Owner Funding
Owners Fund $150,000
Total Owner Funding $150,000
Loans
Loan $45,000
Other
Total Loans $45,000
Total Start up Funds $195,000
Assets
Equipments $20,000
Building and Clinique Centres $45,000
Utensils $5,000
Total Fixed Assets $70,000
Total Start-up Assets $265,000
Start-up Requirements
Total Startup Expenses
Average Monthly Costs

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Breakeven Analysis
Breakeven Analysis
Breakeven Sales Value = average fixed cost/% contribution
Average fixed cost 11533.75
Contribution % 50%
Revenue Contribution Fixed Cost Profit
60000 30000 11533.75 18466.25
72000 36000 11533.75 24466.25
28834.375 14417.1875 11533.75 2883.4375
34601.25 17300.625 11533.75 5766.875
Figure 2: Chart Showing Breakeven Chart of the Business)
Financial Analysis
The financial analysis of the company was evaluated for the company after taking into
account various business factors and macroeconomic environment under which the operations of

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the company will be done. The financial analysis of the company is evaluated for the five year
trend where the business operation and the key functioning of the various key factors of the
company could be assessed and the material impact they have on the company could be assessed.
The growth rate of the revenue of the company will be significantly dependent on the market
penetration and the various types of services provided by the company. The cost of the goods
sold for the company will be amounting to around 50% of the total sales of the company. The
cost would be in the form of the services provided by the doctors and medical
practitioners/optometrists. The direct costs of the company is expected to increase by about 10%
in the five year horizon time frame (Caccioli et al. 2014).
Liquidity plays an important role in the overall operations and functioning of company.
The concern for liquidity has been taken into account well after maintain an adequate amount of
liquidity in the company in the form of cash and cash equivalents. The same can be well
explained with the “what-if” analysis where the changing business condition and scenarios can
potentially harm the operations and sustainability of the business. The sensitivity analysis shows
the change in the final output result of the company result if the business condition and key
factors associated with the company changes substantially (Blum and Dacorogna 2014).
The application of the “what-if analysis” would help the company in getting an overview
the possible business condition if the actors and operations of the company changes rapidly. The
sensitivity analysis shows the movement in key factors like growth rate of sales, rising cost
structure of the company and the market penetration of the various products and services of the
company. He Contributed Margin and the Breakeven analysis of the company under the various
business condition for the company was evaluated thereby incorporating the several changes and

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level of activity Vision care has to do to remain profitable and sustainable in the business
(Dewachter et al. 2015).
The ratio analysis for the company so that the financial analysis and evaluation of the
company could be done on a better way. Debt ratio, current ratio and asset to equity ratio where
the key ratio that were analysed for the company. The debt of the company is expected to remain
decreasing over the financial trend period analysed for the company thereby the company will be
reducing the financial risk of the company (Vogel 2014).
Return on Investment plays a crucial role for determining the overall viability and
success of the organisation. Vision care will be having a low ROI in the first year itself and then
will be increasing in the trend period as the sales and the products/services increases for the
company. On an overall basis after analysing the business financial and condition under different
scenarios and condition the company is expected to remain profitable and provide a sound return
to the stakeholders of the company.

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Reference
Barrett, C., O'brien, C., Butler, J.S. and Loughman, J., 2018. Barriers to glaucoma case finding
as perceived by optometrists in Ireland. Clinical and Experimental Optometry, 101(1), pp.90-99.
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