Business Description A friend, Jay Green, is considering opening a cupcake store to sell gourmet cupcakes Jay has asked you to help with formulating the projected numbers for the business and help analyze if the company will be successful Using the skills you have developed in ACCT 551 Accounting for Managers, you will analyze the business to determine if you will recommend to Jay whether or not to enter into the business venture Jay plans to launch the business on January 1, 2020 Following is the cost information provided by Jay Cost information Jay plans to hire a baker that will charge $12 per dozen cupcakes Jay has found a location near downtown that may be rented for $1,200 per month Utilities are estimated to be $150 per month Fixtures for the business will cost $8,400 (depreciation will be $1,200 per year for 7 years) Jay plans to open the store 7 days per week from 10 00 AM until 6 00 PM Sales people will be paid $10 00 per hour Business insurance will be purchased at a cost of $720 per year Advertising costs are expected to be $2,400 per year Prepare a forecasted statement of cash flows for the year ended December 31, 2020 based on the sale of 24,000 cupcakes at $3 50 per cupcake (15 points)

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Business Description A friend, Jay Green, is considering opening a cupcake store to sell gourmet cupcakes. Jay has asked you to help with formulating the

Business Description

A friend, Jay Green, is considering opening a cupcake store to sell gourmet cupcakes. Jay has asked you to help with formulating the projected numbers for the business and help analyze if the company will be successful. Using the skills you have developed in ACCT 551 Accounting for Managers, you will analyze the business to determine if you will recommend to Jay whether or not to enter into the business venture. Jay plans to launch the business on January 1, 2020. Following is the cost information provided by Jay:

Cost information:

Jay plans to hire a baker that will charge $12 per dozen cupcakes.
Jay has found a location near downtown that may be rented for $1,200 per month.
Utilities are estimated to be $150 per month.
Fixtures for the business will cost $8,400 (depreciation will be $1,200 per year for 7 years)
Jay plans to open the store 7 days per week from 10:00 AM until 6:00 PM. Sales people will be paid $10.00 per hour.
Business insurance will be purchased at a cost of $720 per year.
Advertising costs are expected to be $2,400 per year.

Prepare a forecasted statement of cash flows for the year ended December 31, 2020 based on the sale of 24,000 cupcakes at $3.50 per cupcake (15 points).