For the physical location where the online store operates: Cash: $30,000 Prepaid rent for 3 months: $3,500/month
Question:
For the physical location where the online store operates:
Cash: $30,000
Prepaid rent for 3 months: $3,500/month
Office chairs: $49.99
3 Office desks: $150 each
1 Office shelving unit: $300
1 Filling cabinet: $49.99
3 Computers: $799.99 each
1 laptop: $499.99
1 printer: $30.99
Recycling and garbage bins: $24.99
Toilet: $160
Sink: $299.99
Expenses:
Phone, internet expense 3 term/months: $210
Security expense: $55.99
Hydro water expense for 12 months: $260
Enbridge heat and gas expense for 12 months: $150
Permits/licensing expense for 1 term (months): $2,500
Employee training wages for 120hrs x 2 employees: $16 an hour
Bookkeeper/Accountant for 3 months prepaid: $500
To set up an online store:
Domain name: $10/year
Shopify membership: $29.99/month
Inventory: $1,000
Payment processing 2-3% of Revenue for each product: $1040
G suite account: $5/month
Website theme: $200
Logo design: $200
Marketing: $100
Storage unit per month: $100
Product photos: $1000
Email marketing software: $30/month
Apps and plugins: $200/month
Balance sheet
Create a balance sheet from the information provided above:
These are the costs incurred prior to opening your business doors. You need to focus on two areas:
Start-up expenses (examples are first and last rent, prepaid, phone deposit, and training wages if you need to train before opening...
Start-up assets (furniture, shelving, equipment, inventory etc....)- for inventory, please group it into categories rather than listing out every item you need. i.e. Food inventory, beverage inventory, clothing, candles etc....
Things to consider:
Opening Balance Sheet: Assets= Liabilities + Equity
Assets: Current Assets, Capital / Fixed assets.
Liabilities: Bank Loan, Vehicle loan, mortgage (if applicable)
Equity: Must be 25% of your Total Assets
Example must look like this:
