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Fred's Available Sources of Financing* Personal Bank Account . Bank Loan` $ 150,000 Interest on the Loan $1, 500 per month Things Fred Would...

Fred Franks is an aspiring entrepreneur. His dream is to open a restaurant that deep-fries everything. Deep-fried Twinkies, deep-fried hotdogs, and deep-fried salads were just some of the dishes he wanted to serve. Always a marketing genius, Fred wanted to call his restaurant TGI Fry-Days. He recognized another company was called TGI Fridays, so he made sure to have a very good (and expensive) lawyer.

Fred had $ 100,000 in his bank account, so in order to start TGI Fry-Days, he needed to borrow money. His bank asked for a full business plan with projected startup costs, pro forma income statement, and pro forma cash flow statement (no pro forma balance sheet needed). 

1. Complete all the financial statements for Fred (do not need a balance sheet).

2. How much income will Fred make in Y1?

3. What advice do you have for Fred about his summer vacation?

4. Fred's favorite two days of the year are Valentine's Day (M2) and Halloween (M10). He wants to hold a special promotion on either Valentines or Halloween. If he has a Valentines Event, he estimates it would cost $ 3,000 in additional marketing and $ 5,000 in new signage, furniture, and equipment. If he has a Halloween Event, he estimates it would cost $ 5,000 in additional marketing and $ 10,000 in new signage, furniture, and equipment. Neither event would bring in more revenue, but Fred doesn't care because he loves both holidays. Which event do you recommend? Valentine's Day, Halloween, or both? Why.

Fred's Available Sources of Financing*Personal Bank Account ."Bank Loan`$ 150,000Interest on the Loan$1, 500 per monthThings Fred Would NeedLostI'seful LifeKitchen Equipment*$ 150,001020 VENTSFurniture & Fixtures*20 Year!Signage$ 10.01010 YearsWorking Capital$ 10.010Revenue ForecastM1 : $30,000MIZ & ME : $40, 100 per monthMA - ME: $55,000 per monthMT . $20, and Itaking a summer vacation with his family*!MB - MIZ . $GO, and per monthVariable Expenses "Wages: 25%' Of Revenues*Cost of Ginous Sold ( food; . 37%' of RevenuesMarketing _ 52010 a month , except November & December ! Holiday Season) : $4. 010 a monthNO Taxes . Consider Tul - Fridays to be an LLCOther Expenses ( alphabetical order !{ Soon a monthInsurance*$ 500 a monthLegal FEES$ 2,and a month , but paid as SG, and every 3 months ( starting M!HEnt{ Good a month
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