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Quisha started her business, Q-Anchovies in January 2019, earning $21,000 in revenues and a profit of $1,000. In 2020, she grew her revenues to $33,000 and generated a profit of $10,500. For 2021, she is projecting her revenues to grow by 50%. She had fixed expenses of $10,000 the last two years, but is considering investing $5,000 into marketing. Quisha feels that the investment will increase her revenues an additional 25% over 2020 levels.
Problem a) Make Quisha a projected income statement for 2021. Specific accounts are not necessary, but label expenses as variable or fixed.
Problem b) Perform some analysis on how Q-Anchovies is trending. Discuss some details about how Quisha has performed to date
Problem c) Make some recommendations on what can improved in 2021 and future years.
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