A new client of yours, Katie Perez wants to open an ice cream shop near the downtown shopping center. She will selling Frozen POPS, Frozen Ices, Frozen POPS Packs, Soda and Bottled Water. Her grand opening will be June 1, 2023. Katie needs help figuring out how her business will perform the first year in business. She has hired you as an independent consultant, prepare a cash proforma budget for her business venture. This is a spreadsheet that helps forecast income and expenses over a period of time). It can be used to plan and manage the business if done correctly. Assignment: Using Microsoft Excel, construct a monthly proforma cash budget for your client for the first year of operations. Use the file attached Excel Template - "Perezpops.xls" as your starting point. Download and use this file as the basis for your assignment. Do not make any changes to this pre-defined template items (this means start with the items that already included and that are expected in the spreadsheet). You may add your information to the existing sheets. You may add extra worksheets as needed as well update the template. Do not use a template from a previous semester- this is academic dishonesty and will be subject to disciplinary action. Do not remove the Grading Criteria Worksheet. Place the finished cash pro forma on a worksheet labeled "Cash ProForma". Place all your case assumptions data on a separate worksheet. Label the worksheet "Assumptions" (note: each piece of data must appear in its own cell on the Assumption sheet). Place your start-up costs on a third worksheet labeled "Startup Costs" Create additional worksheets for your What if Scenario recommendation. Events Appropriate Charts (graphs): You will be creating two separate charts so create and label two additional worksheets for the charts (each chart will be in its own worksheet). Chart One-Monthly Product Revenue" - this will show the monthly revenue for each of your five products for the entire year. Chart Two-Total Product Net Income" - You want to track the total product net income for the year to determine any trends or projections in product sales. Make sure both charts are formatted correctly (i.e. appropriate title, legend where appropriate, data series properly labeled) and they are appropriate for business use. Information needed to complete assignment: Products: Specialty POPS, Frozen Ice, Soda and Bottle water. Product Selling Prices: POPS Fruit Explosion $4.75 Vanilla Vanilla $3.75 Chocolate Mousse $4.25 Mango Tangerine Surprise $4.25 Strawberry Crme $3.75 Pina Colada $4.75 Strawberry Kiwi $4.25 Orange Crme $3.75 Chocolate sea salt $4.25 Cookies & Crme $3.25 Pop Packs 12pk $48.00 6pk $24.00 Frozen Ice Medium $3.75 Large $4.25 Soda -$1.95 a bottle Bottled Water - $1.25 a bottle Cost of Goods Sold: POPS Fruit Explosion $0.90 VanillaVanilla $0.40 Chocolate Mousse $0.95 Mango Tangerine $0.70 Strawberry Crme $0.50 Pina Colada $0.90 Strawberry Kiwi $0.70 Orange Crme $0.50 Chocolate sea salt $0.95 Cookies & Crme $0.70 Pop Packs 12pk $7.20 6pk $4.20 Frozen Ice Medium $ 0.95 Large $1.10 Sodas cost about $.90 per 16 oz. bottle Water cost $.08 per 16 oz. bottle Demand Rates: % of customers purchasing Fruit Explosion 25% % of customers purchasing Vanilla Vanilla 30% % of customers purchasing Chocolate Mousse 30% % of customers purchasing Mango Tangerine Surprise 15% % of customers purchasing Strawberry Crme 30% % of customers purchasing Pina Colada 15% % of customers purchasing Strawberry Kiwi % of customers purchasing Orange Crme % of customers purchasing Chocolate sea salt 20% 15% 40% % of customers purchasing Cookies & Crme % of customers purchasing Frozen Ice Medium % of customers purchasing Frozen Ice Large % of customers purchasing Pop 6pk % of customers purchasing Pop 12pk % of customers purchasing sodas % of customer purchasing water 35% 20% 15% 25% 15% 10% 10% Operating Hours: Weekdays (Monday - Thursday). Open 8 hours. Weekends Friday, Saturday Open 12 hours. Employees: One hourly employee needed weekdays. Two hourly employees needed weekends. Hourly employees are paid $12.00 per hour. . Your client will be the manager and draw a salary of $40,000 per year. The assistant manager will receive a salary of $28,500 per year. Product demand on average: Weekdays the owner expects 20 customers per hour. Friday-Saturday the owner expects an average of 32 customers per hour. Start-up costs Kitchen equipment: $12,250 Cash register and sales equipment: $2,550 Initial inventory: $5,000 Pre-opening marketing: $1,000 Store setup (chairs, tables, decor etc.): $3,500 Security deposit: $4,500 First Insurance Payment: $1,500 and then Insurance will be $1000 a month. The building rent is 3600.00 per month. Phone/Internet will cost about $1000 per month. Electricity should cost about $1300 per month. Advertising and promotion will be $500 a month. Your client has $20,000 and plans to borrow $45,000 from the bank with a five-year loan at 6.1% interest. You are to calculate the monthly loan payment using the appropriate financial function. Assume a tax rate of 22% if Income Before Taxes (IBT) is equal to or is greater than $35,500. Assume a tax rate of 15% if Income Before Taxes (IBT) is less than $35,499. You are to calculate the monthly tax payment using the appropriate logical function. Assume that sales will grow at an average of 2.40% per month. Assume that each month contains 4.2 weeks. Recommendations: Show your client how these recommendations would affect the bottom line by recreating the pro forma for each scenario and applying the data analysis to determine profitability. You do not have to start from scratch, but note, these are completely independent pro formas. They must update accordingly from the data worksheets. Plan on showing your analysis and discussing the proforma changes that occur under each new scenario and how it affects profitability. Use a formatted text box (not a comment) to explain your recommendations under each new pro forma. This will be approximately a 2-3 paragraph endeavor. What If Scenario Katie would really like to have a food truck to expand the business because there are lots of local outdoor events where she could sell her products. There is a used food truck available, but it will require some modifications to work for her business. Additionally, there will be extra expenses for operating it. The following are the costs for this that have to be accounted for - some are ongoing monthly, and some are one-time. She would like to pay for the used food truck over time like a car loan, but it will be at a different interest rate and term than her existing loan. New Trucks cost between $50 and $100K so she was really excited when she found an ad locally for the following used truck: Georgia Food Truck For Sale: $33,000.-5.9 24 valve Cummins diesel engine, Automatic transmission-2000 Freightliner MT45 with 363,132 miles, needs new tires. The good news? She was able to negotiate the price to $29,400 but will still have to buy tires. The truck can be bought on a loan over 6 years at 6.75% interest. To get it fully operational she will need the following: Tires $3400, Paint or Wrap to brand with Perez POPS- $2500, Upgraded commercial freezer $3700, additional licensing for the food truck $125, Truck Insurance $650 monthly separate from the business insurance. To operate this part of the business, she will need to hire 2 additional workers that have commercial driver's licenses. She will have to pay these 2 people $15 per hour. The plan is to attend events and sell Perez POPS. Events vary month to month. But, each event will involve paying the workers for an 8 hour day which includes the setup time and working the event. At events, Perez POPS will be selling an estimated 1000 pops per event. Below is the schedule of events over the year and the approximate number of pops sold at each event. Month January February March April May June July August September October November December Number of Events 0 2 4 5 8 12 12 12 7 622 Approximate number of pops sold at each event: Fruit Explosion 100 Vanilla Vanilla 125 Chocolate Mousse 100 Mango Tangerine Surprise 50 Strawberry Crme 125 Pina Colada 50 Strawberry Kiwi 75 Orange Crme 50 Chocolate sea salt 175 Cookies & Crme 150 In a new spreadsheet, using the existing Proforma - add on these additional needs to get the food truck business started. Should Katie invest in this opportunity now? Why or why not. Add a textbox to the spreadsheet for your recommendation/answers to these questions. Reminder: Submit the completed Project in an Excel file to the D2L assignment Dropbox. Name the file YourlastnameExcel.xlsx - Remember (Google Sheets, Numbers, Links, PDFs are all unacceptable - must be an Excel File). Revenue: Fruit Explosion POPS Vanilla Vanilla POPS Chocolate Mousse POPS Mango Tangerine POPS Strawberry Crme POPS 10 Pina Colada POPS 11 Strawberry Kiwi POPS 12 Orange Crime POPS 13 Chocolate Sea Salt POPS 14 Cookies & Crme POPS 1512 Pack POPS 186 Pack POPS 17 Medium Frozen loe 18 Large Frozen Ice 19 Soda 20 Bottled Water 21 Monthly Revenue 23 Expenses: 24 COGS Rant 20 Phone 27 Electricity 28surance 29 Advertising Hourly Wages 31 Salaries 32 Loan Payment 33 Total Expenses 35 Income Before Tax TAX Net Income Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Tot Products: Fruit Explosion POPS Vanilla Vanilla POPS Chocolate Mousse POPS 7 Mango Tangerine POPS Strawberry Crme POPS 9 Pina Colada POPS 10 Strawberry Kiwi POPS 11 Orange Crme POPS 12 Chocolate Sea Salt POPS 13 Cookies & Crme POPS 14 12 Pack POPS 15 6 Pack POPS 18 Medium Frozen Ice 17 Large Frozen Ice 18 Soda 19 Bottled Water 20 21 22 Fruit Explosion Pops COGS 23 Vanilla Vanilla Pops COGS 24 Chocolate Mousse Pops COGS 25 Mango Tangerine Pops COGS 26 Strawberry Crme Pops COGS 27 Pina Colada Pops COGS 28 Strawberry Kiwi Pops COGS 29 Orange Crme Pops COGS 30 Chocolate Sea Salt Pops COGS 31 Cookies & Crme Pops COGS 32 12 Pack Pops COGS 33 6 Pack Pops COGS 34 Medium Frozen Ice COGS 35 Large Frozen Ice COGS 36 Soda COGS 37 Bottled Water COGS 38 Fixed Costs: 40 Rent 41 Phone 42 Electricity 43 Insurance 44 Advertising 45 Operating Information: 47 of days open (weekdays) Sheet 1 Sheet 2 Sheet 3 D Operating informatione 47 of days open (weekdays) of days open (weekends) 4 Hours open (weekdays) 50 Hours open (weekands) st Hourly wage 52 Customers per hour weekdays 53 Customers per hour weekends 54 Hourly employees/day (weekdays) Hourly employees/day (weekends) se % of Customers Purchasing Fruit Explosion POPS 5% of Customers Purchasing Vanilla Vanila POPS % of Customers Purchasing Chocolate Mousee POPS 81% of Customers Purchasing Mango Tangerine POPS 62% of Customers Purchasing Strawberry Crme POPS 3% of Customers Purchasing Pina olada POPS 64% of Customers Purchasing Strawberry Kiwi POPS % of Customers Purchasing Orange Crme POPS % of Customers Purchasing Chocolate Sea Salt POPS 7% of Customers Purchasing Cookies & Crme POPS % of Customers Purchasing 12 Pack POPSPOPS % of Customers Purchasing & Pack POPS 70% of Customers Purchasing Medium Frozen Ice 71% of Customers Purchasing Large Frozen Ice 72% of Customers Purchasing Soda 73% of Customers Purchasing Bottled Water 74 75 76 Manager Annual Salary 77 Assistant Manager Annual Salary 75 79 Growth rate 80 Weeks Per Month 2 Loan period (years) 83 Loan interest rate Taxes: If income before tax is equal or greater than If income before tax is less than 9 Tax rate Tax rate 1 Start Up Costs: Kitchen equipment Cash Register and Sales equipment 5 Initial Inventory 6 Pre-opening marketing 7 Store Setup (chairs, tables, decor etc.) Security deposit Initial insurance payment 10 Total 11 12 Owner's Equity 13 Cash Reserves 14 Loan Amount 15 16 7 0 2 C D