ACCT330 RMU Thrift Shop Business Essay

Description

Write one word sheet (500 word) paragraph about the Excel sheet analyzing the Thrift shop business ( attached the Excel sheet about the thrift shop ) and the paragraph should contain: 1-Introduction: like; what are you doing?, What is the problem with the thrift shop business?, should thrift shop expand or it should in its footprint?. 2-Assumption: What assumption when you making this business?, inflation assumption, is the economic in boom or recession?, cost of assumption. 3-Risk: Interest rate(high or low), tax rate (up or down), inflation (more or less) 4-Result: analyze the scenario manager schedule. 5-Conclusion: conclude you thoughts and your business decision.NOTE: you can change the R (recession) to B (boom), and H ( high ) to L (low) to see the result and make your decision

1 attachmentsSlide 1 of 1attachment_1attachment_1

Unformatted Attachment Preview

Scenario Summary
Current Values:
Changing Cells:
$C$8
R
$C$9
H
Result Cells:
Net Income after Taxes (Expansion)
$
End-of-year Cash on Hand (Expansion) $
Net Income after Taxes (No Expansion) $
End-of-year Cash on Hand (No Expansion)
$
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
69,974
84,974
72,601
87,601
Recession-High inflation
R
H
$
$
$
$
Recession-Low inflation
R
L
69,974
84,974
72,601
87,601
$
$
$
$
Boom-High inflation
B
H
78,510
93,510
80,480
95,480
$
$
$
$
Boom-Low inflation
B
L
61,316
76,316
63,526
78,526
$
$
$
$
68,867
83,867
70,420
85,420
Tutorial Exercise–Collegetown Thrift Shop
Constants
Tax Rate
Loan Amount for Store Expansion
Inputs
Economic Outlook (R=Recession, B=Boom)
Inflation Outlook (H=High, L=Low)
Summary of Key Results
Net Income after Taxes (Expansion)
End-of-year Cash on Hand (Expansion)
Net Income after Taxes (No Expansion)
End-of-year Cash on Hand (No Expansion)
2014
NA
NA
2015
33%
$ 100,000
2014
2015
2016
NA
NA
R
H
NA
NA
2014
NA
NA
NA
NA
$
$
$
$
2015
69,974
84,974
72,601
87,601
2016
35%
NA
2016
$ 73,660
$ 158,634
$ 69,936
$ 157,537
Calculations (Expansion)
Total Sales Dollars
Cost of Goods Sold
Cost of Goods Sold (as a percent of Sales)
Interest Rate for Business Loan
2014
2015
2016
$350,000 $455,000 $591,500
$245,000 $337,610 $465,227
70%
74%
79%
5%
NA
NA
Calculations (No Expansion)
Total Sales Dollars
Cost of Goods Sold
Cost of Goods Sold (as a percent of Sales)
2014
2015
2016
$350,000 $420,000 $504,000
$245,000 $311,640 $396,406
70%
74%
79%
Income and Cash Flow Statements (Expansion)
Beginning-of-year Cash on Hand
Sales (Revenue)
Cost of Goods Sold
Business Loan Payment
Income before Taxes
Income Tax Expense
Net Income after Taxes
End-of-year Cash on Hand
Income and Cash Flow Statements (No Expansion)
Beginning-of-year Cash on Hand
Sales (Revenue)
Cost of Goods Sold
Income before Taxes
Income Tax Expense
Net Income after Taxes
End-of-year Cash on Hand
2014
NA
NA
NA
NA
NA
NA
NA
$15,000
2014
NA
NA
NA
NA
NA
NA
$15,000
2015
2016
$15,000
$84,974
$455,000 $591,500
$337,610 $465,227
($12,950) ($12,950)
$104,440 $113,323
$34,465
$39,663
$ 69,974 $ 73,660
$84,974 $158,634
2015
$15,000
$420,000
$311,640
$108,360
$35,759
$72,601
$87,601
2016
$87,601
$504,000
$396,406
$107,594
$37,658
$69,936
$157,537
ExpansionNo Expansion
Recession
30%
20%
Boom
15%
5%
High
Low
ExpansionNo Expansion
6%
6%
2%
2%

Purchase answer to see full
attachment

User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.