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The owners of a yoga studio are considering expanding its facilities by adding additional equipment and expanding its class offerings to include low - impact
The owners of a yoga studio are considering expanding its facilities by adding additional equipment and expanding its class offerings to include lowimpact workouts. The owners plan to purchase about $ of new equipment each year and want to establish an account to purchase the adjoining property with cash in three to four years. The adjoining property that is being considered has a market value of about $
One of the managers is concerned that these goals are unrealistic because the most recent financial performance does not seem to indicate that this expansion is feasible. This manager has requested your help to examine the company's records and develop a report that will either support or refute the proposed expansion.
The yoga studio is primarily a cash business. Below is the most recent income statement reflecting the cash revenue and cash expenses:
tabletableYoga Studioincome StatementFor Years Ended October Cash revenues:Annual membership fees,,$$
Please create the excel cash budget for and answer the questions in the findings bullet point under presentation, thank you!
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