You just commenced work at a small consulting firm. You have been asked by your manager to create an Excel workbook, so she can provide advice to Kristy and Mel, a pair of clients. Unless instructed otherwise, the workbook is to be designed so that changes in variables are automatically incorporated in the outputs, such as a budget, or income statement.
Mel and Kristy are a pair of former public servants in their late 50s who are really keen to buy a particular bed and breakfast business located on the South Coast of New South Wales. They took a holiday at that bed and breakfast business and fell in love with it. They were particularly smitten by the beautiful views of the ocean through the eucalypt forest surrounding the property and were delighted to find the business is for sale. The place is a bit run down. Mel and Kristy expect it will take about 10 days to repaint the rooms, replace floor coverings update the kitchen equipment etc. Mel and Kristy will do the work themselves. They estimate the cost of these renovations will come to $22,000. These expenditures will be classified as an asset, because it will be part of the cost to get the asset to the condition intended by the new owners. This figure will be added to the cost of the building and will be depreciated over the same time as the building (see below). Their cash balance, after the purchase is expected to be $72,000. Please note, this is before the cost of renovations is taken into account.
The business is scheduled to open for customers in the week ended 1/3/2020. The business will cater to couples who wish to take a short break. No children are allowed. Each room caters for one couple per booking.
The post Create an Excel workbook, to provide advice appeared first on My Assignment Online.