Description Fast forward a few months…Your friend asks you how your business is doing and you are unsure exactly how to answer. In fact, you are not necessarily sure how your business is going since this business venture is new to you! The Hot Dog Cart Project – Part 2 will help you organize your thoughts and come up with a more formalized process and financial reporting can help you demonstrate your financial success (or lack thereof!).For your hot dog cart, come up with some actual financial results and determine profit (Income Statement) and financial position (Balance Sheet). A suggestion would be to expand your Excel spreadsheet from Part 1 by adding an additional tab and derive some actual results. There is no specific format for this your however your data should just be reasonable based on your projections from Part 1 and include all expenses. Please note in Week #6 – Hot Dog Cart Project – Part 1 you came up with a 3 month Income Statement projection, a 6 month Income Statement projection, and a partial Balance Sheet. In this assignment you will make your own assumptions on actual results and come up with new Income Statements figures, a full Balance Sheet and compare them against your original Week #6 Hot Dog Cart Project – Part 1 projections. Your grade is not dependent on whether you are making a profit.Use the momentum from the discussion forums from Week #6 and Week #7 where we collectively brainstormed methods of (a) if the business was profitable and (b) how to measure profitability in a professional format. Include an analysis that summarizes your findings in a professional manner.Hot Dog Cart Project – Part 2 should include a write up regarding your actual results compared to your original projections and your actual results financial statements. 1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; } .slider-slide > img:focus { margin: auto; } Unformatted Attachment Preview Frank’s Hot Dog Cart Financials Bank Write-Up: Attached in a separate word document Current Financial Statements (use the links below to access the templates) Income Statement Balance Sheet als he links below to access the templates) Frank’s INCOME STATEMENTS Revenue Three Months Ended December 31, Six Months Ended December 31, 2019 2019 $ 18,000 $ 26,254 180 23.8% 17.6% Operating expenses: Cost of revenue 4,560 6,254 Sales and marketing 2,470 4,620 General and administrative 990 1,520 Total operating expenses 8,020 12,394 Net income $ 9,980 $ 13,860 52.8% Analysis The Business is having a Good Profit Margin of 76% The Sales are going down after a good first 3 months He is not selling 250 Hot Dogs per day The Net income of 53% is very good Question Who is working at the business? It seems that no Salary are included in these Income Statements If Frank is working full time at this business, his salary would be only $27,720 per year ($13,860 * 2) 1) Due to higher than anticipated sales volume Frank decided to hire additional staff for the weekends. This is good for the Business. He will be able to Sales more Hot Dogs with havin more staff to serve customers. The extra costs of Staff will be covered by the additional Sales Only the Income Statement will be impacted with an Higher Profit! 2) Due to higher than anticipated sales volume Frank also decided to purchase a larger truck and needed to take out a loan in order to bu This is less good for the Business. The cost will increase with the depreciation expense of this new asset and the interest expenses of the It is not sure that the Business will have an higher sales volume. The Income Statement profit have a risk to be lower if the anticipated v The Fixed Assets of the Balance Sheet will increase with the Purchase of the New Truck The Long term debt of the Balance Sheet wil lalso increase with the new Loan neede to buy the truck 3) In order to get the word out about his new business venture Frank decided to spend more on advertising than originally anticipated. This can bee good for the Business if the addiitonal advertising will create an increase in sales. The expenses will increase for sure and the sales may also increase The Income Statement and the Profit will be impacted positively if the Sales increase and Negatively if the Sales do not increase enough t Back to Main Days Price Pricing below market price of $6 $ 4.50 250 Hot Dogs per day 45,000 Hot Dogs Margin of 76% on Sales, it is very good e out a loan in order to buy the truck. e interest expenses of the Loan. e lower if the anticipated volume of sales is not realized n originally anticipated. s do not increase enough to cover these addiitonal advertising expenses $ 5,834 32 Hot Dogs per day 0.58 He is not selling 250 Hot Dogs per day Hot Dogs per day Dogs per day Frank’s BALANCE SHEETS December 31, 2019 Assets (expand the list to include all assets) – Required for Part 1 & Part 2 Current assets: Cash and cash equivalents $ Accounts receivable 10,110 11,240 Inventories 1,265 Other 3,240 Total current assets Property and equipment, net of accumulated depreciation of ____ Total assets 25,855 Good level of Current Assets 7,940 $ 33,795 $ 10,000 Liabilities and stockholders’ equity (Required for Part 2) Current liabilities: Accounts payable Accrued expenses 3,795 Other Total current liabilities 13,795 Long-term debt – Total liabilities Commitments and contingencies Stockholders’ equity: 10,000 If Frank Realized $25,000 of Profit for the f Money from Mom & Dad 10,000 With a forecasted Profit of $25,000 after th Total stockholders’ equity Total liabilities and stockholders’ equity 20,000 $ 33,795 Back to Main Good level of Current Assets If Frank Realized $25,000 of Profit for the first year, his investment would have been good With a forecasted Profit of $25,000 after the first year, Frank should be able to give back the money to his parents? Purchase answer to see full attachment Tags: Financial Statements Balance Sheet financial results Franks Hot Dog Income Statement User generated content is uploaded by users for the purposes of learning and should be used following Studypool’s honor code & terms of service.

Description

Fast forward a few months…Your friend asks you how your business is doing and you are unsure exactly how to answer. In fact, you are not necessarily sure how your business is going since this business venture is new to you! The Hot Dog Cart Project – Part 2 will help you organize your thoughts and come up with a more formalized process and financial reporting can help you demonstrate your financial success (or lack thereof!).For your hot dog cart, come up with some actual financial results and determine profit (Income Statement) and financial position (Balance Sheet). A suggestion would be to expand your Excel spreadsheet from Part 1 by adding an additional tab and derive some actual results. There is no specific format for this your however your data should just be reasonable based on your projections from Part 1 and include all expenses. Please note in Week #6 – Hot Dog Cart Project – Part 1 you came up with a 3 month Income Statement projection, a 6 month Income Statement projection, and a partial Balance Sheet. In this assignment you will make your own assumptions on actual results and come up with new Income Statements figures, a full Balance Sheet and compare them against your original Week #6 Hot Dog Cart Project – Part 1 projections. Your grade is not dependent on whether you are making a profit.Use the momentum from the discussion forums from Week #6 and Week #7 where we collectively brainstormed methods of (a) if the business was profitable and (b) how to measure profitability in a professional format. Include an analysis that summarizes your findings in a professional manner.Hot Dog Cart Project – Part 2 should include a write up regarding your actual results compared to your original projections and your actual results financial statements.

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

Frank’s Hot Dog Cart Financials
Bank Write-Up:
Attached in a separate word document
Current Financial Statements (use the links below to access the templates)
Income Statement
Balance Sheet
als
he links below to access the templates)
Frank’s
INCOME STATEMENTS
Revenue
Three Months Ended
December 31,
Six Months Ended
December 31,
2019
2019
$
18,000
$
26,254
180
23.8%
17.6%
Operating expenses:
Cost of revenue
4,560
6,254
Sales and marketing
2,470
4,620
General and administrative
990
1,520
Total operating expenses
8,020
12,394
Net income
$
9,980
$
13,860
52.8%
Analysis
The Business is having a Good Profit Margin of 76%
The Sales are going down after a good first 3 months
He is not selling 250 Hot Dogs per day
The Net income of 53% is very good
Question
Who is working at the business?
It seems that no Salary are included in these Income Statements
If Frank is working full time at this business, his salary would be only $27,720 per year ($13,860 * 2)
1) Due to higher than anticipated sales volume Frank decided to hire additional staff for the weekends.
This is good for the Business. He will be able to Sales more Hot Dogs with havin more staff to serve customers.
The extra costs of Staff will be covered by the additional Sales
Only the Income Statement will be impacted with an Higher Profit!
2) Due to higher than anticipated sales volume Frank also decided to purchase a larger truck and needed to take out a loan in order to bu
This is less good for the Business. The cost will increase with the depreciation expense of this new asset and the interest expenses of the
It is not sure that the Business will have an higher sales volume. The Income Statement profit have a risk to be lower if the anticipated v
The Fixed Assets of the Balance Sheet will increase with the Purchase of the New Truck
The Long term debt of the Balance Sheet wil lalso increase with the new Loan neede to buy the truck
3) In order to get the word out about his new business venture Frank decided to spend more on advertising than originally anticipated.
This can bee good for the Business if the addiitonal advertising will create an increase in sales.
The expenses will increase for sure and the sales may also increase
The Income Statement and the Profit will be impacted positively if the Sales increase and Negatively if the Sales do not increase enough t
Back to Main
Days
Price
Pricing below market price of $6
$
4.50
250 Hot Dogs per day
45,000 Hot Dogs
Margin of 76% on Sales, it is very good
e out a loan in order to buy the truck.
e interest expenses of the Loan.
e lower if the anticipated volume of sales is not realized
n originally anticipated.
s do not increase enough to cover these addiitonal advertising expenses
$
5,834
32 Hot Dogs per day
0.58 He is not selling 250 Hot Dogs per day
Hot Dogs per day
Dogs per day
Frank’s
BALANCE SHEETS
December 31,
2019
Assets (expand the list to include all assets) – Required for Part 1 & Part 2
Current assets:
Cash and cash equivalents
$
Accounts receivable
10,110
11,240
Inventories
1,265
Other
3,240
Total current assets
Property and equipment, net of accumulated depreciation
of ____
Total assets
25,855
Good level of Current Assets
7,940
$
33,795
$
10,000
Liabilities and stockholders’ equity (Required for Part 2)
Current liabilities:
Accounts payable
Accrued expenses
3,795
Other
Total current liabilities
13,795
Long-term debt
–
Total liabilities
Commitments and contingencies
Stockholders’ equity:
10,000
If Frank Realized $25,000 of Profit for the f
Money from Mom & Dad
10,000
With a forecasted Profit of $25,000 after th
Total stockholders’ equity
Total liabilities and stockholders’ equity
20,000
$
33,795
Back to Main
Good level of Current Assets
If Frank Realized $25,000 of Profit for the first year, his investment would have been good
With a forecasted Profit of $25,000 after the first year, Frank should be able to give back the money to his parents?

Purchase answer to see full
attachment

Tags:
Financial Statements

Balance Sheet

financial results

Franks Hot Dog

Income Statement

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