Question 5 (30 points)

Please read the attached Farmacy Inc: Harbourfront Guardmedics Pharmacy Case. Answer the following questions fully but concisely.

1. Determine the total investment required to start the Harbourfront Pharmacy. How much additional financing will Lafort need to cover this investment?
2. Identify the variable costs as a percentage of sales.

3. Project the annual cash budget, income statement, and statement of financial position for the first two years of operation (fiscal 2013 and 2014). Use the Excel worksheet provided as a template.
4. As Lafort, what would you do? Note that you should base this assessment on the statements provided in part (c). I do not expect a detailed answer 2-3 paragraphs should be sufficient.