Task 2 of 2 Decision Making Exercise (3.1, 3.2, 3.3, 3.4, 4.1 &4.2) Instructions Scenario Mr....

 

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Task 2 of 2 Decision Making Exercise (3.1, 3.2, 3.3, 3.4, 4.1 &4.2) Instructions Scenario Mr. Neil Down owner of Woody Train, a toy store specializing in handcraft wooden train toys. Mr. Neil wants to raise £20,000 by getting a new partner. He has prepared an income statement put together with his last budget to your attention as you expressed interest in being Mr. Down's partner. Instructions 1. What poor decision(s) did Mr. Down take? 2. Which line(s) should be changed for the following budget? 3. 4. 5. Knowing that the selling price of 1 train set is £15, what was the unit cost per train set Given that Melissa and Doug makes a gross profit of £12.40 and a net profit of £1.20 per unit sold, what do you make of Mr. Down's results? KnowingthatitwasMr.Down'ssecondyearinbusinessandthathestarted withacapitalof £20,000 and made a Revenue of £212,460.00 and a loss of £5,870.45 on his first year, would you invest? Why/Why not? 6. What other financial statements would you need to see before making a decision? What would these documents tell you? Delivery and Submission . 1x Answer to all the questions Task 2 of 2 Decision Making Exercise (3.1, 3.2, 3.3, 3.4, 4.1 &4.2) Instructions Scenario Mr. Neil Down owner of Woody Train, a toy store specializing in handcraft wooden train toys. Mr. Neil wants to raise £20,000 by getting a new partner. He has prepared an income statement put together with his last budget to your attention as you expressed interest in being Mr. Down's partner. Instructions 1. What poor decision(s) did Mr. Down take? 2. Which line(s) should be changed for the following budget? 3. 4. 5. Knowing that the selling price of 1 train set is £15, what was the unit cost per train set Given that Melissa and Doug makes a gross profit of £12.40 and a net profit of £1.20 per unit sold, what do you make of Mr. Down's results? KnowingthatitwasMr.Down'ssecondyearinbusinessandthathestarted withacapitalof £20,000 and made a Revenue of £212,460.00 and a loss of £5,870.45 on his first year, would you invest? Why/Why not? 6. What other financial statements would you need to see before making a decision? What would these documents tell you? Delivery and Submission . 1x Answer to all the questions

Answer rating: 100% (QA)

Mr Downs poor decision was likely not adequately forecasting expenses and revenue leading to inaccur... View the full answer