AB 299 Unit 6 Assignment Impact to Profit and Loss Statement
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AB 299 Unit 6 Assignment Impact to Profit and Loss Statement
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Go to Tim ’ s Coffee Shoppe and look in the back office . Inside the file drawer labeled “ Business ” is Tim ’ s Coffee Shoppe Income Statement for the year for 2011 . This is the most recent record Tim has . This year , several large businesses are moving in around his coffee shop and he expects business to increase . Tim needs to create a pro forma profit and loss ( income ) statement for this year , and you need to help him .
In this assignment , discuss whether each area in the pro forma income statement will increase , decrease or stay the same due to large businesses moving into the neighboring buildings into his area and explain your rationale why that line item will increase , decrease or stay the same . Remember , Tim serves coffee to many people who work in the area , so he would certainly expect a major increase in his business volume .
This assignment is not looking for dollar figures , but primarily your justification on why the line items will change and what direction they will change , if any . You may make assumptions based on the increased sales volume and how it will affect income and expenses , if and when you do make these assumptions , please describe them and their effects on each line item .