it ed ta Financing Devyani managed to save $40,000 from her work at Tandoori Flame which she decided to invest in Masala Kitchen. She borrowed $20,000 in equipment from her family. Her family did not expect any interest, but expected to be paid back over the next 4 years. At the end of her first year in business, she remitted her first repay of $5,000 to her father. She was able to secure a $20,000 line of credit from her bank at a 5% annual interest rate, which was enough for her to get started. Equipment Devyani sourced all the necessary cooking equipment from India, where her father was able to secure the equipment from his restaurant and suppliers at better prices than she could get in Canada. Her father packed and shipped all the restaurant equipment in a 20 ft container and shipped it to Canada: o Cooking and refrigeration equipment cost $10,000, which was to be depreciated at 20% per annum. o Furnishings and fittings cost $5,000 which was to be depreciated at 10% per year.o Cutlery, utensils, wares, pots, pans etc. for $5,000. These were expensed in the first year. She purchased signage locally which cost $5,000, to be depreciated at 10% per year. Finally, she commits her own car to transport materials and supplies to the business. Her car was valued at $15,000, and is to be depreciated at 20% per year. Staffing Devyani hired three employees, one for the kitchen, and two to serve customers and cash. Devyani filled in as required. She paid her employees $15 an hour, just above minimum wage. They worked 10 hours/ day from 11 am-9 pm, 6 days a week. She rotated her staff as Square One and the restaurant were open 7 days a week, 365 days/yr. Devyani decided to pay herself as the Restaurant Manager $2,000/mth until the business grow. Lease expenses Sales Leasing a spot in the food court of one of the busiest mails in Ontario does not come cheap. Monthly lease expenses for the 200 sq ft space cost $75/sq ft, or $15,000 per month, utility costs included. Sales began slowly as can be expected in January, but picked up after April. Masala Kitchen's average meal sold for $10. For the year, sales averaged $30,000 per month. Cost of Goods Sold The cost of the food and beverage ingredients was not very high, averaging 20% of sales. Expenses Liability Insurance: $2,000/yr. Your vehicle expenses for gas, maintenance and car insurance totaled $5,000 for the year. Due to the natural foot traffic in Square One mail, Devyani did not see the need to advertise outside the mail, set up a website or engage in any advertising. As such, marketing expenses were. Taxes: Any specials could be advertised on the electronic menu board. As a small business, your Federal Tax rate is 9% and your Provincial Tax rate is 3% Outstanding balances