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I need the owners equity, cash reserves and loan amount o 1/4 of all customers will buy Small Sundae o 3/4 of all customers will
I need the owners equity, cash reserves and loan amount
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 client's 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 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 client's 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 Step by Step Solution
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