Cupcake Recipe Makes 24 cupcakes Ingredients: - Vanilla cupcake mix (1 box) - 10oz frozen strawberries in syrup, thawed - 8 oz cream cheese, softened - 1/4 cup butter, softened - 1 teaspoon vanilla - 4 cups icing (powdered) sugar - Red food coloring - 24 strawberries - 14 muffin cups Supplies Consumables (used up): Betty Crocker Vanilla Cake Mix Frozen Strawberries Cream Cheese Butter Vanilla Extract (Pure) Icing (Powdered) Sugar Red Food Coloring Fresh Strawberries Muffin Cups $2.17 per box $4.97 for 16oz $2.47 for 8 oz $6.97 for 2 cups $5.97 for 100 teaspoons $2.97 for 8 cups $4.25 for 19ml $4.97 for 15 $1.97 for 120 cups Non-Consumable (can be reused for multiple batches): $9.97 for 1 pan (makes 12 cupcakes every 20 minutes) 5.99 for 1 (holds enough for 24 cupcakes) $4.50 for 1 $7.89 for tools Other: $15 per person per hour (to make and/or sell cupcakes) Booth at the Farmer's Market $500 for the season (20 days - 3 hours each day) If any other equipment or supplies are needed please reference their price from Walmart.ca or Amazon.ca. Sale Price of Cupcake $5 per cupcake Year End Financials - To get started, your mom gave your sister $500 in exchange for stock in the new business. - Your sister purchased an oven for $1250 using a 3 year loan with an annual interest rate of 4.7%. She still owes $1000 plus interest. - The muffin pans, bowl, mixing spoon, and frosting applicator can be used again next year. - A friend of yours covered a day at the farmer's market ( 3 hours). Your sister still owes them wages for that day. - At the end of the year, your sister has cash on hand. She also has $20 worth of consumables on hand for next year (red food coloring, muffin cups, etc) plus the nonconsumables. She started the year with 0 cupcakes, sold 720 , and ended the year with 0 cupcakes (cupcakes won't keep until next year's farmers market). - The vendor next to her at the farmer's market still owes her $30 from the money she lent them (they needed cash for giving change). Using the data provided, calculate the financial ratios (show work, explain where numbers come from): 1. Net profit to owners equity (2) 2. Net profit to net sales (2) 3. Net sales to fixed asset (2) 4. Current ratio (2) 5. Acid test (2) 6. Receivables to working capital (2) 7. Inventory to working capital (2) 8. Collection period (2) 9. Net sales to inventory (2) 10. Inventory turnover ratio (2) 11. Net sales to working capital (2) 12. Long term liabilities to working capital (2) 13. Debt to owners equity (2) 14. Current liabilities to owners equity (2) 15. Fixed assets to owners equity (2)
