You have an idea to start a business selling cabinets to high-end home builders. How much money do you need to start the business if you know the following: Rent for space for shop::

$(1500)/(m)o

Utilities:

$(250)/(m)o

Truck for deliveries:

$22,000

Accounts Receivable:

$25,000

avg (30-day terms) Wood and supplies in inventory to make cabinets:

$36,000

Misc expenses:

$(2600)/(m)o

Payroll shop workers:

$6,(000)/(m)o

Machinery/equipment:

$25,000

You are confident you will break even after 4 months

$123,750

$224,400

$149,400

$118,350

 

Transcribed Image Text:

You have an idea to start a business selling cabinets to high-end home builders. How much money do you need to start the business if you know the following: 1. Rent for space for shop:: $1500/mo 2. Utilities: $250/mo 3. Truck for deliveries: $22,000 4. Accounts Receivable: $25,000 avg (30-day terms) 5. Wood and supplies in inventory to make cabinets: $36,000 6. Misc expenses: $2600/mo 7. Payroll shop workers: $6,000/mo 8. Machinery/equipment: $25,000 9. You are confident you will break even after 4 months You have an idea to start a business selling cabinets to high-end home builders. How much money do you need to start the business if you know the following: 1. Rent for space for shop:: $1500/mo 2. Utilities: $250/mo 3. Truck for deliveries: $22,000 4. Accounts Receivable: $25,000 avg (30-day terms) 5. Wood and supplies in inventory to make cabinets: $36,000 6. Misc expenses: $2600/mo 7. Payroll shop workers: $6,000/mo 8. Machinery/equipment: $25,000 9. You are confident you will break even after 4 months

Answer rating: 100% (QA)

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