Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Doris Halloran has been asked to invest in her friend Roger's new business venture. The new business will consist of three food trucks operating

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1. Doris Halloran has been asked to invest in her friend Roger's new business venture. The new business will consist of three food trucks operating in the district of a large metropolitan area. Roger is asking Doris to invest $80,000 in the business and assures her that it will make enough downtown money to return $20,000 in profits per year to her Calculate the estimated return on achieve if the restaurant is only profitable enough to return to her $15,000, $10,000, or $5000 and then answer the questions that follow (to one decimal place) that Doris would achieve if Roger is correct. Also, calculate the retums Doris would Investment Estimated Profits Amount ($) to be Returned () 20,000 15,000 10,000 5,000 Estimated Return on Investment (ROI) (%) 80,000 80,000 80,000 80,000 a. Assume that Doris has $80,000 available to invest. What are some factors she should consider before deciding to help Roger in his new business venture? b. What speafic information do you think Doris would want Roger to provide her prior to making her investment decision? well Nicole did this year at generating sales, controlling expenses, and providing a profit. Complete Nicole's P&L below using vertical analysis. Last Year (S) % This Year ($) % SALES ^ 104 Managerial Accounting for the Hospitality Industry

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sawyer's Internal Auditing The Practice Of Modern Internal Auditing

Authors: Lawrence Sawyer, Mortimer Dittenhofer, James Scheiner

5th Edition

0894131788, 978-0894131783

More Books

Students also viewed these Accounting questions

Question

Describe the importance of global talent management.

Answered: 1 week ago

Question

Summarize the environment of recruitment.

Answered: 1 week ago