TITLE THINK LIKE AN ACCOUNTANT

Chapter 1
ANALYSIS The analysis worksheet contains a schedule to estimate the excess of revenue over expenses.

STEPS 1 Read all of the steps before working with this workbook.

2 Click the Analysis worksheet tab to view the schedule.

3 Key your name in cell B2.

Enter the data to analyze each question:

4 Enter the appropriate data in cells denoted by a question mark (?).

5 Use the schedule to answer question 1.

6 Change the data as necessary to answer questions 2 and 3.

7 Save your work as TLA1.

8 Submit on Edmodo assignment TLA1.

Problem Number: Think Like an Accountant, Chapter 1
Student's Name: June

Revenue
Design Fees
Number of Clients 25
1. I do not suggest him to quite his $50,000; because as I use the number
that he planned for his business, the income that he will be receive is
Hours per Client 75 lesser than the present job.

2. The hourly billing rate he would need to charge to replace his current
salary would be around $50, because as I added up, the money turns out
Total Billable Hours 1,875 to be approx. $52,000, which is more than he current job.

3. He must need more than 25 customers in order to obtain the goals

Billing Rate $ 40 that he set, and also to gain more income than his current job.

4. A change in the worksheet that could make the analysis easier would
be separate them in different categories, and highlight the headline in
order to see clearere topic and sub-topic, and also change the "Excess of
Revenue over Expenses" to profit or income. Because some people won't
Total Design Fees $ 75,000 be able to understand.
Hosting Fees
Number of Clients 25
Monthly Fee $ 30
Total Hosting Fees 9,000
Total Revenue $ 84,000

Expenses
Advertising $ 6,000
Cellular Phone/Internet 1,800
Insurance 4,800
Miscellaneous 5,040
Rent 6,000
Supplies 3,600
Utilities 3,600
Total Expenses $ 30,840
Excess of Revenue over Expenses $ 53,160