In the first milestone of your final project, you will determine and classify the costs necessary for opening your business.
accounting
Description
Overview:
In the first milestone of your final project, you will determine and classify the costs necessary for opening your business. This is a critical step that
must be done correctly for you to successfully complete the subsequent milestones and the final submission.
Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding
the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You
will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below.
There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the
boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of
1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is
$420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel
investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services.
