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Smoothie Doozie A friend of yours wants to open a store that sells smoothies. Your friend tells you the following: Smoothies range in price from…

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Smoothie Doozie A friend of yours wants to open a store that sells smoothies. Your friend tells you the following: Smoothies range in price from…

This assignment is for an Entrepreneurship course. Please see instructions below and attachments.

Instructions

1. Construct a monthly pro-forma cash budget for your friend for the first year of operations.

a. Place all your assumptions on one worksheet. Name the worksheet “Assumptions”

b. Place your start up costs on a second worksheet named “Startup Costs”

c. Place the cash proforma on another worksheet named “Cash Pro-forma Budget”

2. When is the dollar break even point? (Profits = zero). Use a text box to identify it.

3. Graph the Revenue and the Net Income after Taxes. Name this worksheet “Graph”

4. Double the marketing and advertising. Assume this increases the growth rate to a number that will be given to you in your email. Would this be a good business decision? Why or why not? Name your worksheet “Double”

5. Suggest two reasonable business recommendations to your friend. Show your friend how these recommendations would affect the cash budget. Use a text box to explain your changes. Name the worksheet “Recommendations”

No constant numbers should be used on the worksheets. All constants should be limited to the Assumptions worksheet or the Startup Costs worksheet. This will allow you to do “what-if” analysis.

Assume a 4.2 week month.

Use the Excel file in the assignment tool as a template to help you get started. Do not change the items in the file. Use the same labels so it is easy to identify all of the required items and values.

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