I have a bookstore, run for 1 year and 3 months. In the beginning I loan 103mil vnd to start. In the overall course of time: my revenue is 457,661,000 vnd, and my expense is 511,433,000 vnd. My inventory now, if I sell all of them, will amount to 104,806,000 mil. And I have paid for some items but they haven't arrived. I paid around 11 mil vnd. I have 50mil in cash right now.
my goal is to:
- recover the loss (if any)
- pay off 60mil loan
- have a profit of 2 mil per month
in the course of 1 year.
Now let's say I can hit 30mil in revenue each month. What is the maximum expense I should go for?

Let's break this down step by step to help you determine the maximum expense you should aim for to reach your financial goals.

### 1. **Calculate the Total Loss/Profit So Far**
We need to calculate your net loss or profit at this point.

#### **Revenue:**  
457,661,000 VND

#### **Expense:**  
511,433,000 VND

#### **Inventory Value (if sold):**  
104,806,000 VND

#### **Items Paid For (not arrived yet):**  
11,000,000 VND

#### **Cash Available:**  
50,000,000 VND

#### **Loan:**  
60,000,000 VND

Now, we calculate the net loss/profit at this point:
- Your current assets:  
\[ \text{Total assets} = \text{Cash} + \text{Inventory Value} - \text{Items Paid For} \]  
\[ \text{Total assets} = 50,000,000 + 104,806,000 - 11,000,000 = 143,806,000 \text{ VND} \]

- Your total loan and expenses:
\[ \text{Total expenses (incl. loan)} = 511,433,000 + 60,000,000 = 571,433,000 \text{ VND} \]

- Current net balance:
\[ \text{Net balance} = \text{Revenue} + \text{Total assets} - \text{Total expenses} \]  
\[ \text{Net balance} = 457,661,000 + 143,806,000 - 571,433,000 = 30,034,000 \text{ VND (loss)} \]

So, you have a **net loss of 30,034,000 VND**.

### 2. **Determine Your Financial Goals**
You want to:
1. Recover the current loss of 30,034,000 VND.
2. Pay off a 60,000,000 VND loan.
3. Make a 2,000,000 VND profit per month for 12 months, which equals:  
   \( 2,000,000 \times 12 = 24,000,000 \text{ VND} \).

#### Total goal:
\[ 30,034,000 + 60,000,000 + 24,000,000 = 114,034,000 \text{ VND} \]

### 3. **Revenue Over the Next Year**
You expect to make **30,000,000 VND** in revenue each month.  
In one year, your total revenue will be:  
\[ 30,000,000 \times 12 = 360,000,000 \text{ VND} \]

### 4. **Maximum Allowable Expense**
To achieve your goal, your expenses should leave enough room for:
- Recovering the loss,
- Paying off the loan,
- Achieving a profit of 24,000,000 VND over 12 months.

So, your allowable expenses for the year would be:
\[ \text{Allowable expense} = \text{Revenue for the year} - \text{Total financial goal} \]  
\[ \text{Allowable expense} = 360,000,000 - 114,034,000 = 245,966,000 \text{ VND} \]

Therefore, your maximum monthly expense should be:
\[ \text{Monthly allowable expense} = \frac{245,966,000}{12} = 20,497,167 \text{ VND/month} \]

### **Conclusion:**
To meet your financial goals, your **maximum expense** should not exceed **20,497,167 VND per month**.

Would you like further details or clarifications on any of these steps?

Here are 5 related questions you might find helpful:
1. How can you reduce expenses to fit within this monthly limit?
2. What are strategies to increase your monthly revenue beyond 30 million VND?
3. What kind of loan repayment plan could work best for your current financial situation?
4. What are the risks if your revenue falls short of 30 million VND per month?
5. How can you liquidate your inventory more efficiently to free up cash flow?

**Tip:** Tracking your monthly expenses carefully and identifying areas for cost reduction can help you stay within budget and meet your financial goals faster.

I have a bookstore, run for 1 year and 3 months. In the beginning I loan 103mil VND to start. In the overall course of time: my revenue is 457,661,000 VND, and my expense is 511,433,000 VND. My inventory now, if I sell all of them, will amount to 104,806,000 mil. And I have paid for some items but they haven't arrived. I paid around 11 mil VND. I have 50mil in cash right now. My goal is to: recover the loss (if any), pay off 60mil loan, and have a profit of 2 mil per month in the course of 1 year. Now let's say I can hit 30mil in revenue each month. What is the maximum expense I should go for?

This problem helps you calculate the maximum allowable expenses to recover a bookstore's loss, pay off a loan, and generate profit. Includes step-by-step revenue and expense analysis, asset valuation, and budget planning based on a revenue goal of 30 million VND per month. Suitable for advanced financial math students in Grades 10-12.

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