Discovery Books and Magazines Inc.

Discovery books is a small book store that is opening in January of 2021

The owners hope to start with sales in their first month of $7500. Each month there after they hope to grow by 20% with a 40% sales increase in sales in July Nov and Dec.

Inventory purchases has been costed out as 50% of sales each month

Based on the above information, complete the sales and inventory purchases on the template supplied in this test (sheet 2 on the excel)

Once you have completed the two excel sections - carry these numbers over to your cash flow template.

Using the monthly expenses included in this document, carry these over to your cash flow template and complete the document indicating if the company will be profitable in year one or not.

Advertising & Promotion	200 per month
Insurance	450 per year (paid upfront)
Rent	1200 per month
Telephone	50 per month
Utilities	150 per month
Management Salaries	1600 per month
Supplies	100 per month
Miscellaneous	325 per month

Note: To complete this part of the test go to the link provided at the top of the page and download the cash flow template to your computer-

Sheet 1 in this excel is your cash flow for Discovery Books. Please complete all appropriate lines as per the case study attached

Sheet 2 has 2 excel spreadsheets - 1 x sales. 1 x inventory costs. Please complete both.Put on the top line of each spreadsheet - each month of business year and the calculated for sales and inventory purchases based on the case study. Carry these numbers over to your cash flow.