Question
1.What will be the key success factors to start uMunch and sustain its business? 2.Determine the initial cash needs to start the business. 3.Once uMunch
1.What will be the key success factors to start uMunch and sustain its business?
2.Determine the initial cash needs to start the business.
3.Once uMunch starts operating, determine the expenses that will be fixed costs and variable costs.
4.Project uMunch's sales on a monthly basis for 2019, 2020 and 2021.
5.Prepare monthly cash budget for 2019, 2020, and 2021.Hint: If uMunch ends any month with a negative cash balance, then use the line of credit and factor in the resulting interest expense.
6.Prepare 2019, 2020, and 2021, Income statements and balance sheets.
7.Using your figures, do you believe that Rezvani and Rajah should proceed with starting uMunch?Support your opinion with ratios such as ROI, ROE and Break even.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started