14 Aug ASSOCIATES CAPSTONE IN MANAGEMENT
PART 1
Go to Tim’s Coffee Shoppe and look in the back office. Inside the file drawer labeled “Business” is Tim’s Coffee Shoppe Income Statement for the year for 2011. This is the most recent record Tim has. This year, several large businesses are moving in around his coffee shop and he expects business to increase. Tim needs to create a pro forma profit and loss (income) statement for this year, and you need to help him.
In this assignment, discuss whether each area in the pro forma income statement will increase, decrease or stay the same due to large businesses moving into the neighboring buildings into his area and explain your rationale why that line item will increase, decrease or stay the same. Remember, Tim serves coffee to many people who work in the area, so he would certainly expect a major increase in his business volume.
This assignment is not looking for dollar figures, but primarily your justification on why the line items will change and what direction they will change, if any. You may make assumptions based on the increased sales volume and how it will affect income and expenses, if and when you do make these assumptions, please describe them and their effects on each line item.
You can go on the Internet and search for videos covering financial statements.
These are the line items:
Income earned:
Expenses include:
Salaries
Rent
Depreciation
Supplies
Lease (on your refrigerator) Tax
Interest (on loans currently held) Insurance
Checklist:
-
If and when you made assumptions, based on the increased sales volume and how it will affect income and expenses, please describe them and their effects on each line item.
-
Given what you have assumed and projected, will the total expenses increase or decrease? Why?
-
Given what you have assumed and projected, will the net profit increase or decrease? Why?
In a minimum of a 1—2 page double-spaced Word document using 12 pt. New Times Roman font, please respond to the line items above and the two questions provided. Include an additional title page and references page.
ARTICLE: http://extmedia.kaplan.edu/business/Media/AB299/Tims_Coffee_Shop/index.html
PART 2
In order for Tim’s Coffee Shoppe to be successful, Tim will have to be sure he has a consistent and reliable supply of coffee beans.
Research coffee bean producing countries on the Internet, and choose one country along with a grower that would have the greatest supplier potential to import beans for domestic sales with your distribution firm.
Checklist: Address the following items in an expository essay and APA format and citation style:
-
Choose a country and a grower for your supplier of coffee beans that you (as distributor) can then sell.
-
What are the economic advantages of dealing with a vendor from this country?
o Does the country have environmental laws that align with those of our country?
o What are they?
o Will there be a marketing advantage by divulging the source of the coffee beans?
o Why or why not?
o Will sourcing the beans from the supplier you choose affect Tim’s bottom-line or not?
Discuss your reasoning.
Write your expository essay response in Standard American English, paying special attention to grammar, style, mechanics, organization, and a logical and focused response to the assignment.
Write your original, double-spaced expository essay in a minimum of 4 pages (which includes a Title and a References page) and use 12 point Times New Roman font. Your citations (minimum 1, and maximum 2 two short scholarly citations) and references must follow APA format and citation style.
Respond to the questions in a thorough manner, providing specific examples of concepts. Ensure that your viewpoint and purpose are clearly stated. Demonstrate logical and appropriate transitions from one idea to another.
Asisgnment is due tomorrow, November 5th, 2013 by 10:00 pm by New York time.
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