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On January 14, 2012, Amy Bourgon, sole proprietor of Bake Me A Cake (BMAC), set out to make some decisions relating to the business's future method. BMAC had actually grown and Bourgon was considering a relocation due to the fact that she was not sure of how much more development the current area might accommodate and questioned whether it was time to take the company to the next level. Bourgon required to decide whether to refurbish her household's house or to rent an industrial place for business.
Also, due to the fact that Bourgon wished to enhance BMAC's success, she was considering increasing cupcake rates; and she likewise wondered how BMAC ought to best promote for fiscal 2012. Bourgon decided she would initially evaluate the business's three-year monetary efficiency and then job monetary performance for financial 2012, depending on her decisions.
She hoped to implement all modifications prior to April 2012, when the next busy wedding season would begin.
Assignment
You are a undergraduate accounting student who has actually provided to assist Amy carry out the necessary analysis.
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Use the following as a guide to assist in finishing the project.
1. What are BMAC's strengths and weak points?
2. Determine dangers and opportunities in the market.
3. Examine the company's statement of cash flows for the year ended December 31, 2011. 4. Examine the relevant monetary ratios for BMAC.
5. Outline the pros and cons of renovating the family home versus leasing a location. Complete a differential analysis for these two alternatives.
6. What are the advantages and disadvantages to increasing cupcake prices? Calculate the direct cost per cupcake.
What would the contribution from cupcake sales be for the suggested price points?
7. Create an advertising strategy for the next fiscal year that meets Amy’s needs.
8. Recommend the
changes that Amy should make, based on your analyses.
9. Prepare a projected statement of earnings and balance sheet for the year ended December 31, 2012.
This report is to be written as a long business report (see D2L for various documents). It requires a cover page, executive summary, table of contents, introduction, body, conclusion, and appendices. Students will have a maximum of ten (10) pages, plus an additional five (5) pages of appendices available to present their analysis. The cover page, executive summary, and table of contents do not count toward the overall page count for the report.
Midterm case instructions: bake me a cake. (2016, May 13). Retrieved from https://studymoose.com/midterm-case-instructions-bake-me-a-cake-essay
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