There are definite steps to take in account when opening the cooking school for children. The first thing to take in account is considering the start-up costs. Opening the cooking school implicates lots of costs. It is prudent to compute the costs of opening the cooking school for children. That will help ABC cooking school for children ascertain how much start-up cash the business will need.
Income Statement
Year 1
Year 2
Year 3
Year 4
Year 5
Sales through fees of services
60000
70000
80000
90000
100000
Cost of Goods Sold
2250
2500
2750
2900
3100
Gross Profit
57750
67500
77250
87100
96900
Licenses
5000
5000
5000
5000
5000
Maintenance
12000
14000
18000
20000
22000
Salaries
30000
30000
30000
30000
30000
Selling Expense
5000
5000
5000
5000
5000
Office Expense
5200
5200
5200
5200
5200
Other
1000
1000
1000
1000
1000
Total SG & A Expense
58200
60200
64200
66200
68200
Net Income
-450
7300
13050
20900
28700
Balance sheet
Year 1
Year 2
Year 3
Year 4
Year 5
Cash
35000
35000
35000
35000
35000
Accounts Receivable
20000
22000
25000
27000
29000
Total Current Assets
55000
57000
60000
62000
64000
Fixed Assets
200000
210000
220000
230000
240000
Total Assets
255000
267000
280000
292000
304000
Accounts Payable
-494550
-490300
-483050
-478900
-474700
Total Current Liabilities
2500
2500
2500
2500
2500
Total Liabilities
-494550
-490300
-483050
-478900
-474700
Retained Earnings
-450
7300
13050
20900
28700
Other Equity
750000
750000
750000
750000
750000
Total Liabilities and Equity
255000
267000
280000
292000
304000
Sensitivity and Risk Analysis
ABC Cooking School for Children may face risk due to various factors. These factors may include the factors of production that is land, labor and capital. These factors of production determine the actual value of money as the growth or the success of business depends on it. Risk and sensitivity analysis, determine the viability of a project based. In the formulation of projects is common to find that the expected financial results are dependent on the values ??assigned to variables in the commodity markets and products, efficiency of processes and other variables of various kinds. The income statement shows the income and expenses of a company over during an accounting period. It represents the type, amount and source of that income and expense components. Result of the income statement is the net income or net loss. It is one of the key success indicators for the evaluation of companies and their management.
In the income statement of the company's revenues and expenses of the last accounting period are presented. As an accounting period is usually the last calendar year, but ...