MIS 3210 Homework #9 Pro-forma income statement Remember Alex McMann from the At
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MIS 3210 Homework #9 Pro-forma income statement Remember Alex McMann from the Athlete's Foot shoe store? Well there is this large store that went out of business located in the same shopping center as Alex's store. The store has been closed for some time and the space has not been rented to anyone new. Alex has an idea. He will lease that store space and open a large fitness center. That will attract people to the shopping center which may lead to an increase in walk-in traffic at his shoe store. Should he do it? There's not any really any way to know for certain whether the fitness center will be a profitable business. Therefore, we cannot make an informed decision at this point. We need to generate information from the data that we have so far, to acquire the knowledge to make a better-informed decision. We will start by creating a pro-forma income statement similar to the one that Patty created for her pie store. Here are Alex's estimated expenses (per year): Per Year Fixed Expenses: Lease on building Utilities Equipment Lease Liability Insurance Other Overhead Expenses $80,000 $10,000 $8,000 $5,000 S2,000 Per Every 100 members Variable Expenses: Trainers Salary Floor Staff Salary S30,000 $20,000 Here are Alex's projected number of fitness center members: 800 Worse Case: Most likely Case: Best Case: 1,000 1,200 Using Excel and Alex's estimated expenses and forecasted memberships, create a pro- forma income statement. Assume that Alex will charge $50/month for a membership.Explanation / Answer
Here we need to implement the excel data base based on the information provided in the question and develop the income statement for alex shoe store.here i am developing the excel file and upoload it as a image.
Total Expenses=D3*$C$5
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