Wk 7: Assignment 3 of Oct 29 ~ Nov 4: How to finance your venture

Assignment 3 of Oct 29 ~ Nov 4: How to finance your venture

A.      Find out how much we need for the business
   1.    Rent: 1-3 years: $ 6,000. per month x 36
   2.    Equipment: including machine, counter, tables, chairs, containers, tools:total about $30,000
   3.    Salary: how many employee for how long
   4.    Material: coffee, cream, sugar, etc.
   5.    Utilities: electricity, water, insurance
   6.    Decoration and advertisement:
----------------------------------------------------- $142,000 x 3.

B.      Business structure
   1.       Partnership(LLP): Funding by individual
   2.       S Corp: Funding by individual or get loan from government or bank
   3.       C Corp: Sell stock or bond to people
  
   The advantages of S Corp are:
   1) Can issue stock not trouble like C Cop so easy to managed
   2)

C.      Option to finance the money;
   1.  Get money from the founder
   2.  Finance from the bank

ASSETS				LIABILITIES
Current Assets				Current Liabilities
	Cash	5,000		Accounts Payable		80,000
	Accounts Receivable	10,000		Wages Payable		5,000
	Store Inventory	100,000		Taxes Payable		2,000
	Total Current Assets	115,000		Total Current		87,000
				Liabilities
Long-Term Assets				Long-term (Noncurrent) Debts
	Store Equipment	30,000		Bank Debt		10,000
	less one year's			Total Liabilities		97,000
	Accumulated
	Depreciation	3,000
	Net Long-Term Assets	27,000		Owner's Equity
				Common Stock issued
				1,000 shares outstanding)		15,000
				Retained Earnings		30,000
				Total Owner's Equity		45,000
Total Assets		142,000				142,000