Instructions:

In this task you will be carrying out an analysis of the financial situation of your company, as well as a projected budget for the first month of operation. Use the financial statement information you find in the simulator in the Company section, under Income Statement, Balance Sheet, and Cash Flow Statement.

Part I - Analysis of the financial situation

Investors and analysts using ratio analysis to assess the financial health of companies by studying past and current financial statements. Comparative data can show how a company is performing over time and can be used to estimate its future performance. This data can also compare a company's financial situation with industry averages or with others within the same sector. Using the financial statements showing the results after the second round, calculate the following financial ratios:

1) Current relationship 2) Fast Ratio (Acid Rate Ratio) 3) Asset rotation 4) Debt to assets 5) Debt to Equity 6) Gross profit margin 7) Net profit margin 8) Return on Assets (ROA) 9) Return on Equity (ROE) 10) Cash flow from operations

a. For each financial reason: ? Presents the computations and the result of each financial ratio.

? Explain what the result obtained represents.

b. Carry out an analysis of the financial position of the company based on the results obtained, is it favorable or unfavorable?

Part II - Projected Budget spreadsheet

In this part of the task, you must evaluate the result obtained in the simulator (in dollars) for the last few weeks since the start of operations. When you enter the BizCafe simulator, look for the Dashboard section that shows the results by week.

Calculate an average of sales, purchases, and operating expenses, using historical data from the first two weeks of operation. It uses as a base the information presented in the simulator (see in the Dashboard):

	Base Average (in dollars)
Sales (sales)
Shopping
Operational costs and expenses

This information will help you make your weekly projected sales, purchasing, and operational budget:

Sales budget

Detail	Month 1 - week 3	Month 1 - week 4	Projected Total
units
Sale price
Total sales (in dollars)

Shopping budget

Detail	Month 1 - week 3	Month 1 - week 4
units
Sale price
Total sales (in dollars)

operational budget

om ICloud. BizCafe @ Interpretive Simulations BizCafe Week 2 nuc42771130-leader Industry: liveplay Company: 30 Income Statement for January, Month to Date January % of Year % of to Date Rev. to Date Rev. Revenue $4,615.25 100% $4,615.25 100% COGS $921.21 20% $921.21 20% Gross Margin $3,694.04 80% $3,694.04 80% Management $2,580.00 56% $2,580.00 56% Staff $940.63 20% $940.63 20% Adv./Promo. $3,360.00 73% $3,360.00 73% Rent $2,000.00 43% $2,000.00 43% Utilities $0.00 0% $0.00 0% $0.00 0% Depreciation Expense $0.00 0% $0.00 0% $0.00 0% Interest on Loan $700.00 15% $700.00 15% Other $9,580.63 208% $9,580.63 208% Total Expenses -128% $(5,886.59) -128% $(5,886.59) Net Income\f. Dashboard Weekly Purchase Variance 38.4% ~11 8.8% (Smear Margin "N 83l4% +78% Capacity Utilization Customof Satisfaction l, +18.0% Weekly Net 7 Income $(1 ,064.98) +77.9% Wait Time Satisfaction Weekly Change in Cash $(4,562.63) +53% Panel Colors What do the panel colors mean