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Fast forward a few months...Your friend asks you how your business is doing and you are unsure exactly how to answer. In fact, you are not necessarily sure how your business is going since this business venture is new to you! The Hot Dog Cart Project - Part 2 will help you organize your thoughts and come up with a more formalized process and financial reporting can help you demonstrate your financial success (or lack thereof!).
For your hot dog cart, come up with some actual financial results and determine profit (Income Statement) and financial position (Balance Sheet). A suggestion would be to expand your Excel spreadsheet from Part 1 by adding an additional tab and derive some actual results. There is no specific format for this your however your data should just be reasonable based on your projections from Part 1 and include all expenses. Please note in Week #6 - Hot Dog Cart Project - Part 1 you came up with a 3 month Income Statement projection, a 6 month Income Statement projection, and a partial Balance Sheet. In this assignment you will make your own assumptions on actual results and come up with new Income Statements figures, a full Balance Sheet and compare them against your original Week #6 Hot Dog Cart Project - Part 1 projections. Your grade is not dependent on whether you are making a profit.
Use the momentum from the discussion forums from Week #6 and Week #7 where we collectively brainstormed methods of (a) if the business was profitable and (b) how to measure profitability in a professional format.
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