I’m trying to learn for my Accounting class and I’m stuck. Can you help?
Prepare a short bank write up. (approximately 1 page).
In your bank write up you will explain to the bank why your (Frank’s) business will be viable. Submission could include (but are not limited to) location, time of year, target consumer, pricing, anticipated sales volume, and what makes your hot dogs special. You may submit your bank write up as a separate word document or you may submit it within the provided excel spreadsheet under the “bank write up” tab.
For example: “I take night classes at a university so I can make myself available for my target consumer – the ever-hungry college student. Many students are hot dog connoisseurs looking for the next level of perfection and this is where my business will stands out! I will provide a high quality, low cost hot dog that will leave my consumers satisfied. In regard to pricing for less than $5 I will provide customers with an experience to remember leaving them wanting to come back for more! In addition, I have secured a vendor partnership with a local vegan business so that I can also offer vegan options to my customers. My hot dog cart is also earth conscious utilizing paper serving items to be recycled.
This brief write up is provided as an example meant to be a fun exercise so that you can get creative with your (Frank’s) new business!
Prepare DRAFT estimated financial statements for the bank consideration and decision making.
Use the attached sample excel spreadsheet provided. Please note the figures already contained within the excel spreadsheet are provided as a sample. Therefore, you will be deleting the sample figures provided and deriving and submitting your own figures.
The financial statements are going to be basic and will build on your fundamental knowledge from the first three chapters of the book. You will provide the following:
1. A basic projected Income Statement similar to what is provided in the sample excel spreadsheet. You will provide a projection for the first 3 months of the new business venture and for the first 6 months of the new business venture. (less than 1 page in total)
2. A partial projected Balance Sheet similar to what is provided in the sample excel spreadsheet which will list the types of assets needed. You should include the following items [cart, hot dogs, buns, mustard, ketchup] and add up to 5 more of your own choosing. (less than 1 page in total)
You can use the assets and expenses examples discussed during the Week #3 group brainstorm. You may also want to refer to the following sites or do research on your own to get some idea of basic pricing.
Both components of Part 1 will be submitted as an individual assignment. If you complete your bank write up as a separate word document remember to attach both files to your submission.