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, 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/when you do make these assumptions, please describe them and their affects on each line item. These are the line items:Income Earned Expenses include: SalariesRent Depreciation SuppliesLease (on your refrigerator)TaxInterest (on loans currently held)Insurance Given what you have assumed and projected, will the total expenses increase or decrease? Why? Given what you have assumed and projected, will the net profit increase or decrease? Why?
In this assignment, discuss whether each area in the pro forma income statement will increase, decrease or stay the same due to large businesses
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