ACC 110 Study Guide - Income Statement
3 Dec 2013
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Document Summary
Your friend has returned after 2 weeks and he has now completed a business plan. It looks great - he forecasts a profit in the first year of approximately 20% of the total investment! His business plan includes a 5 year forecast for the income statement which predicts that he will be able to sell 90% of his used-book purchases every year. His operating costs are low as he plans to run the business out of his mother"s basement with the garage as a secondary space if the business grows. This advertising strategy will keep costs down while attracting the business he needs. He thinks the business should be run as a partnership but you would be a silent partner with limited legal liability. Profits would be split 60/40 since, although you have both invested the same amount, he will be the one doing all the work.
