BIG D'S PAINTING COMPANY Dave 'valoon lives in Maple Ridge, British Columbia, and is contemplating starting his own painting business. Having worked for a national painting franchise during his summers whlle attending college, Dave feels that he has the experience and skills necessary].r to be successful with this venture Because he knows the area. he would like to establish the business in Maple Ridge and the surrounding communities of Pitt Meadows. Port Coquittam. and Coquittam. He will concentrate on providing professional and hlgh-quality re5ioential painting services. He intends to base the business out of his home and to set up a home ofce. as his work will be done at the site of the homeowner. In addition. Dave has been told that part of his home expenses tutilities, rent. insurance. etci can be deductible business expenses if he does this. Although Dave is pretty sure that a viable opportunity exists. he knows that he should prepare an estimate of income for the rst year of operations. From his industry experience. he estimates that an average painting job for a residential project is about $2.500. His main concern is whether he will be able to obtain enough at these projects to make thls a financially viable business. To that end, he has collected some information from outside sources as well as from his experience working in the industry. This information is founo in Table 1. HOL'IESHI'HI LWTAREA Dave feels that 33 percent of all homeowners initiate painting projects each year in his area. He is not sure how to 1"\" as verify this percentage, however. Dave estimates there are 100 painting companies in his intended market area. He feels that all will be his competition. He has also made the fotlowing estimates concerning his operating expenses for his rst year. Wages [Ernst-st!\" and 1 other Moshe} 530500 Liaiaiesipaane 1,500 homoefmoummy'insuhcc 3.000 \\bhjcle amuse stoo Athenian] moo Equinmun'mppii 5:000 Rent 1,300 Comments 1-000 Tom w Questions 1. Using the information provided. prepare an estimate of total market revenue and Dave's share of market revenue for the rst year of operations. 2. What adjustments should Dave make to the above information to be more accurate with total market revenue? 3. What adjustments or additions should be made to the information to be more accurate with the market share and projected ancorne statement tor the first year of operations