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Open the Budget tab and create the following monthly cash-flow budget: Revenues: Caveman Cooking plans to sell, on average, $8,000 worth of cooked meat products
- Open the Budget tab and create the following monthly cash-flow budget:
- Revenues: Caveman Cooking plans to sell, on average, $8,000 worth of cooked meat products each month ($96,000 in sales/12 months). However, seasonal sales expectations are as follows:
- Jan and Feb 31% of average each month
- March 62% of average
- April 99% of average
- May and June 124% of average each month
- July through October 149% of average each month
- November 99% of average
- December 31% of average
- Expenses: Caveman Cooking has the following monthly expenses
- 20% of their monthly revenue is page out as wages.
- Rental fee on public parking lot where they set up their Food Truck is $150/month
- Operating loan: Caveman Cooking borrowed money to purchase their Food Truck and BBQ/Smoker equipment. The total amount borrowed was $25,000 and was financed over 7 years at a rate of 6.5%. They make monthly payments.
- Miscellaneous expenses: meat, sauces, smoking wood, lighters, gloves, fuel, and advertising are expected to be about 25% of monthly sales.
- Answer the following questions:
- Is Caveman Cooking able to cover all of their monthly expenses?
- What would happen if their average monthly sales estimate is wrong, and they are only averaging $6,000?
- Revenues: Caveman Cooking plans to sell, on average, $8,000 worth of cooked meat products each month ($96,000 in sales/12 months). However, seasonal sales expectations are as follows:
- Jan and Feb 31% of average each month
- March 62% of average
- April 99% of average
- May and June 124% of average each month
- July through October 149% of average each month
- November 99% of average
- December 31% of average
- Expenses: Caveman Cooking has the following monthly expenses
- 20% of their monthly revenue is page out as wages.
- Rental fee on public parking lot where they set up their Food Truck is $150/month
- Operating loan: Caveman Cooking borrowed money to purchase their Food Truck and BBQ/Smoker equipment. The total amount borrowed was $25,000 and was financed over 7 years at a rate of 6.5%. They make monthly payments.
- Miscellaneous expenses: meat, sauces, smoking wood, lighters, gloves, fuel, and advertising are expected to be about 25% of monthly sales.
- Answer the following questions:
- Is Caveman Cooking able to cover all of their monthly expenses?
- What would happen if their average monthly sales estimate is wrong, and they are only averaging $6,000?
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