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 - Sprinkles 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. 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 two additional worksheets for your recommendations. Ice Cream Cakes and Iced Coffee. 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). 1 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: Sugar cones, ice cream cups, milkshakes, sundaes, toppings, soda and bottle water. Product Selling Prices: I scoop Cup or Sugar Cone - $2.25 2 scoops Cup or Sugar Cone - $3.25 3 scoops Cup or Sugar Cone $4.25 I scoop Sugar Cone - $2.25 2 scoops Sugar Cone - $3.25 3 scoops Sugar Cone $4.25 Small Shake $2.95 Medium Shake - $3.75 Large Shake $4.50 Small Sundae (1 topping) - $2.55 Medium Sundae (1 topping) - $3.55 Large Sundae (1 topping) - $4.65 Additional topping: .50 per topping Soda -$1.25 a bottle Bottled Water - $1.00 a bottle Cost of Goods Sold: Ice Cream Cones (Ice cream ingredients and cone) cost $1.10 for 1 scoop and .20 cents extra for each additional scoop Ice cream Cups (Ice cream ingredients and cup) cost $1.25 and .20 cents per extra for each additional scoop Small Shake cost $1.40 Medium Shake cost $1.55 Large Shake cost $1.75 Small Sundae cost $1.35 1 Medium Sundae cost $1.50 Large Sundae cost $1.75 Additional Toppings cost $.10 Sodas cost about $.7 per 16 oz. bottle Water cost $.6 per 16oz bottle The building rent is $2500 per month. Phone/Internet will cost about $1000 per month. Electricity should cost about $1200 a month. Insurance will be $900 a month. Advertising and promotion will be $800 a month. Operating Hours: Sprinkles will be open seven days a week. Sprinkles will serve ice cream products all day and will be open 11am 8 pm on weekdays (Monday Thursday, Sunday). 11am - 11pm Friday, Saturday Employees: Two hourly employees on Friday, Saturday One hourly employee needed during Monday - Thursday, Sunday Either an assistant manager or manager is required during the Sprinkles Operating hours. Your client will be the manager and draw a salary of $35,000 per year (including benefits). She will work during the busiest times and fill in for the assistant manager. Approximately 40%. The assistant manager will receive a salary of $22,400 per year(including benefits). Approximately 60%. Hourly workers will be paid $8.75 an hour. Demand Rate: Monday - Thursday, Sunday the owner expects 10 customers per hour. Friday - Saturday the owner expects an average of 20 customers per hour.. 1 Product demand on average: o 1/2 of all customers will buy 1 scoop Ice Cream Cones o 1/2 of all customers will buy 2 scoop Ice Cream Cones o 1/3 of all customer will buy 3 scoop Ice Cream Cones o 1/2 of all customers will buy 1 scoop Ice Cream cups o 1/2 of all customers will buy 2 scoop Ice Cream cups o 1/3 of all customer will buy 3 scoop Ice Cream cups o 1/4 of all customers will buy Medium Shakes o 1/4 of all customers will buy Large Shakes o 1/2 of all customers will buy Small shakes o 1/4 of all customers will buy a Large Sundae o 1/3 of all customers will buy a Medium Sundae o 1/4 of all customers will buy Small Sundae o 3/4 of all customers will buy a Soda o 1/4 of all customers will buy a Bottled Water o 1/4 of all customers will buy an additional topping Start-up costs Kitchen equipment: $10,250 Cash register and sales equipment: $1,350 Initial inventory: $4,500 Pre-opening marketing: $1,500 Store fixtures (chairs, tables etc.): $4,500 Oil paintings of your clients momma and grandma to hang on the wall: $350 Licenses: $1,025 Security deposit: $4,500 First Insurance Payment: $750 Your client has $8,000 and plans to borrow the rest from the bank with a five-year loan at 2.5% interest. You are to calculate the monthly loan payment using the appropriate financial function. Assume a tax rate of 21% if Income Before Taxes (IBT) is equal to or is greater than $13,500. Assume a tax rate of 13% if IBT is less than $13,500. You are to calculate the monthly tax payment using the appropriate logical function. Assume that sales will grow at an average of 1.50% 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. 1 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. Scenario One: What if Analysis for adding flavored ice coffees. Your client is unsure if she should sell flavored ice coffees. She thinks she can sell a coffee to every second customer and it seems to be lucrative because the coffee sells for $3.75 each and costs him only $1.60 to purchase. Unfortunately your client is afraid that he would cannibalize his soft drink sales with the coffee customers (one soft drink less for every coffee sold). It will cost him $5,250 to purchase the equipment and insurance costs would rise by another $155 per month due to the hot equipment needed to make the coffee. What is your recommendation: Should your client offer flavored coffee to her customers? Scenario Two: What if Analysis Your client would like to consider adding ice cream cakes to the list of items available for sale. She is wanting to offer cakes with customized cake, ice cream decorations. She thinks she can sell 20 small cakes a week and 25 large cakes a week. It seems to be lucrative because the small cake is $16.95 and the large cake is $23.95. Costs are $5.45 per small cake and $7.40 per large cake. It will cost her $3,250 to purchase the equipment and insurance costs would rise by another $255 per month due to the hot equipment needed to make the cakes. What is your recommendation? Would it be profitable to sell the cakes?

B23 X fit B D E F G G H 1 J L M N O P P 0 B S OC T Y W X 2 > AA AB AC AE Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total A 1 1 2 3 3 4 Revenue: 5 1 scoop cone 6 2 scoop cone 7 3 scoop cone 8 1 scoop cup 9 2 scoop cup 10 3 scoop cup 11 Sundaes Small 12 Sundaes Medium 13 Sundaes Large nude 14 Shakes Small 15 Shakes Medium one 16 Shakes Large 17 Soda 18 Bottled Water 19 Extra toppings 10 20 Monthly Revenue 21 22 Expenses: 23COGS 24 Rent 25 Phone 26 Electricity 27 Insurance 28 Advertising w 29 Hourly Wages 30 Salaries 31 Loan Payment 32 Total Expenses 33 34 Income Before Tax 35 Tax 36 Net Income 37 Cash Flow 38 39 Grading criteria Sheet 1 Sheet 2 Sheet 3 > A23 X for Sundaes Medium COGS D E F G H J K L M N 0 P Q R S T U V W X Y Z AA A c 37 Advertising 38 39 Operating Information: 40 # of days open (weekdays) 11 # of days open (weekends) 22 Hours open (weekdays) Herspe 13 Hours open (weekends) 74 Hourly wage 15 Customers per hour weekdays #6 Customers per hour weekends 17 Hourly employees/day (weekdays) * 48 Hourly employees/day (weekends) 9 50 % of customers purchasing 1 scoop Ice Cream Cones/cups 51 % of customers purchasing 2 scopps Ice Cream Cones/cups song 52 % of customers purchasing 3 scoops Ice Cream Cones/cups echipamoll 53 % of customers purchasing Small Shakes Sindi 54 % of customers purchasing Medium Shakes of customers are being conten 55 % of customers purchasing Large Shakes of customer purchasinsam 56 % of customers purchasing Small Sundaes watching 57 % of customers puchasing Medium Sundaes 58 % of customers purchasing Large Sundaes 59 % of customers purchasing sodas 50 % of customers purchasing bottled water 51 % of customers purchasing additional toppings 22 53 Manager Annual Salary 84 Assistant Manager Annual Salary 55 56 38 Growth rate 57 Weeks Per Month 38 59 Loan period (years) 20 Loan interest rate 71 72 Taxes: 23 If income before tax is equal or greater than: Tax rate = 14 If income before tax is less than: Tax rate = 15 76 Grading criteria Sheet 1 Sheet 2 Sheet 3 + Ready - - + 50% A11 Initial insurance payment B C E F G H 1 J K M N D s V w X Y z AA AB AC AD AE 1 Start Up Costs: 2 3 Kitchen equipment 4 Sales equipment (cash register, etc.) 5 Initial inventory 6 Pre-opening marketing 7 Fixtures/Furniture (chairs, tables etc.) 8 Oil painting 9 Licenses 10 Security deposit 11 Initial insurance payment 12 Total 13 14 Owner's Equity 15 Cash Reserves 16 Loan Amount 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Grading criteria Sheet 1 Sheet 2 Sheet 3 + Ready A + 50% B23 X fit B D E F G G H 1 J L M N O P P 0 B S OC T Y W X 2 > AA AB AC AE Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Total A 1 1 2 3 3 4 Revenue: 5 1 scoop cone 6 2 scoop cone 7 3 scoop cone 8 1 scoop cup 9 2 scoop cup 10 3 scoop cup 11 Sundaes Small 12 Sundaes Medium 13 Sundaes Large nude 14 Shakes Small 15 Shakes Medium one 16 Shakes Large 17 Soda 18 Bottled Water 19 Extra toppings 10 20 Monthly Revenue 21 22 Expenses: 23COGS 24 Rent 25 Phone 26 Electricity 27 Insurance 28 Advertising w 29 Hourly Wages 30 Salaries 31 Loan Payment 32 Total Expenses 33 34 Income Before Tax 35 Tax 36 Net Income 37 Cash Flow 38 39 Grading criteria Sheet 1 Sheet 2 Sheet 3 > A23 X for Sundaes Medium COGS D E F G H J K L M N 0 P Q R S T U V W X Y Z AA A c 37 Advertising 38 39 Operating Information: 40 # of days open (weekdays) 11 # of days open (weekends) 22 Hours open (weekdays) Herspe 13 Hours open (weekends) 74 Hourly wage 15 Customers per hour weekdays #6 Customers per hour weekends 17 Hourly employees/day (weekdays) * 48 Hourly employees/day (weekends) 9 50 % of customers purchasing 1 scoop Ice Cream Cones/cups 51 % of customers purchasing 2 scopps Ice Cream Cones/cups song 52 % of customers purchasing 3 scoops Ice Cream Cones/cups echipamoll 53 % of customers purchasing Small Shakes Sindi 54 % of customers purchasing Medium Shakes of customers are being conten 55 % of customers purchasing Large Shakes of customer purchasinsam 56 % of customers purchasing Small Sundaes watching 57 % of customers puchasing Medium Sundaes 58 % of customers purchasing Large Sundaes 59 % of customers purchasing sodas 50 % of customers purchasing bottled water 51 % of customers purchasing additional toppings 22 53 Manager Annual Salary 84 Assistant Manager Annual Salary 55 56 38 Growth rate 57 Weeks Per Month 38 59 Loan period (years) 20 Loan interest rate 71 72 Taxes: 23 If income before tax is equal or greater than: Tax rate = 14 If income before tax is less than: Tax rate = 15 76 Grading criteria Sheet 1 Sheet 2 Sheet 3 + Ready - - + 50% A11 Initial insurance payment B C E F G H 1 J K M N D s V w X Y z AA AB AC AD AE 1 Start Up Costs: 2 3 Kitchen equipment 4 Sales equipment (cash register, etc.) 5 Initial inventory 6 Pre-opening marketing 7 Fixtures/Furniture (chairs, tables etc.) 8 Oil painting 9 Licenses 10 Security deposit 11 Initial insurance payment 12 Total 13 14 Owner's Equity 15 Cash Reserves 16 Loan Amount 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 Grading criteria Sheet 1 Sheet 2 Sheet 3 + Ready A + 50%