create a Master Budget in excel with formulas and links; only assumptions may be hard

coded inYou can make any assumptions for the first months of operation of Lando Book Store. You will create assumptions for each

of the budgets required in the Master Budget. Assumptions should be reasonable. You will ultimately

create a monthly Income Statement and a monthly Balance Sheet for Lando. The Balance Sheet must

balance.

Some initial assumptions:

Lando Book Store purchases a building, including all required fixtures and equipment, for its store

on the first day of operation; depreciate the building, fixtures and equipment as one asset

appropriately

Make assumptions on the purchase price of the store, salvage value and depreciable life

Assume the owners contribute half the capital required to purchase the store and borrow from

its bank for the other half on the first day of operation; any future funds required for operation

will be borrowed from the bank at the end of the month, with interest due monthly; assume a

minimum level of cash to operate; excess cash may be used to pay down bank debt

Make assumptions on interest rates

Make assumptions on pricing and COGS

Make assumptions on payment terms to your supplier; sales will be all cash

Make assumptions on staffing and utility costs for operation

Ignore taxes

After completing the Master Budget, run three different scenarios of costvolume profitability analysis

ie change volume, pricing, spending in some combination to see the impact on Net Operating

Income. Determine the breakeven point for the business and calculate its Degree of Operating

Leverage. Include these calculations in another sheet of the excel workbook file you will send to me