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Tim?s Coffee Shoppe to be successful (assignment)

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Question;part 1Below is Tim?s Coffee Shop Income Statement for the year for 2008. This is the most recent record Tim has. This year, several large businesses are moving in around his coffee shop and he expects business to increase. Tim needs to create a pro forma profit and loss (income) statement for this year.Income Earned............................... $400,527Expenses:Salaries Expenses.............................$101,600Rent Expense..................................$14,400Depreciation Expense........................$12,116Supplies Expense..............................$135,827Lease Expense.................................$11,987Tax Expense................................... $40,515Interest Expense.............................. $615Insurance Expense.............................$8,956Total Expenses --------------------------------$326,016Net Income ------------------------------------$74,511====================================================================I need to know if in each area in the pro forma income statement will increase, decrease or stay the same due to large businesses moving into the neighboring buildings into his area and explain the rationale why that line item will increase, decrease or stay the same. Tim serves coffee to many people who work in the area, so he would certainly expect a major increase in his business volume.This is not looking for dollar figures, primarily your justification on why the line items will change and what direction they will change, if any. You may make assumptions based on the increased sales volume and how it will affect income and expenses, if/when you do make these assumptions, please describe them and their affects on each line item. These are the line items:Income EarnedExpenses include:SalariesRentDepreciationSuppliesLease (on your refrigerator)TaxInterest (on loans currently held)InsuranceGiven what you have assumed and projected, will the total expenses increase or decrease? Why?Given what you have assumed and projected, will the net profit increase or decrease? Why?part 2In order for Tim?s Coffee Shoppe to be successful, Tim will have to be sure he has a consistent andreliable supply of coffee beans.Research coffee bean producing countries on the Internet, and choose one country along with agrower that would have the greatest supplier potential to import beans for domestic sales with yourdistribution firm.Choose a country and a grower for your supplier of coffee beans that you (as distributor) canthen sell.? What are the economic advantages of dealing with a vendor from this country?o Does the country have environmental laws that align with those of our country?o What are they?o Will there be a marketing advantage by divulging the source of the coffee beans?o Why or why not?o Will sourcing the beans from the supplier you choose affect Tim?s bottom-line or not?Discuss your reasoning.Minimum of 2 pages requiredAdditional RequirementsMin Pages: 2Level of Detail: Only answer needed

 

Paper#51209 | Written in 18-Jul-2015

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