ONLY ANSWER PART 3
Part 1: Giselle Rodriguez owns Rodriguez Art Studio in Havana, Cuba. It has fixed overhead costs of $3,000 per month. The variable cost is $5 and the price is $20, per person per art lesson. There are typically 500 customers each month.
a) Construct a fully labeled break even chart for Rodriguez Art Studio
Part 2: Using the following figures from Rodriguez Art Studio's. Figures are: Interest $8,000, Tax $9,200, Cost of Goods Sold $200,000. Net Profit before Interest and tax $100,000. Slaes Revenue $450,000.
b) Construct a fully labeled Income Statement for Rodriguez Art Studio as of 31 December 2018.
Part 3: Using the following figures from Rodriguez Art Studio's Balance Sheet. Figures are Sales Revenue $91,000, Stock $20,000, Current liabilities $35,000 and Current Assets $110,000.
c) Comment on the liquidity position the the Studio.
Part 4: Using the following data:
- Sales revenue: $10,000 March, $10,000 April, $9,000 May, $11,000 June
- Payment from customers is 50% paid in cash, 50% paid on one months credit.
- Direct Costs $5,500 April, $4,950 May, $6,060 June
- Opening Cash Balance in April $1,200
- Indirect Costs are $5,100 per month
d) Prepare a cash flow forecast for April, May & June
Last Part) Rodriguez Art Studio needs a new computer system that costs (initial investment) $350,000 and is forecasted to generate a significant amount of cash flow over the next five years.
e) What are some examples for Rodriguez Art Studio that distinguish between revenue expenditure and capital expenditures?