1
Fins Seafood 
Diner
Please read the instructions carefully and provide what 
is being requested.
A new client of yours, Fineas Wright, wants to open a small diner selling calamari,
oysters, fried shrimp, catfish sandwiches, salads, French fries, and sodas. He is 
planning to open the diner on the September 1, 2014.
You, as an independent consultant, have been hired to develop a cash pro forma 
budget for his business venture (note: this is a spreadsheet that helps forecast 
income and expenses over a period of time). It can be used to plan for and manage 
the business if done correctly.
Assignment:
Using Microsoft Excel, construct a monthly proforma cash budget for your client for 
the first year of operations.
Use the file attached Excel Template - “SeaFood Template” as your starting point. 
This is the file that must be downloaded and used as the basis for your assignment. 
Do not make any changes to this pre-designed template.
Do not use a template from a previous semester – this is considered academic 
dishonesty and will be subject to disciplinary action.
Place the finished cash pro forma on a worksheet labeled “Cash ProForma". 
Place all your case assumptions data on a separate worksheet. Label the
worksheet "Assumptions" (note: each piece of data must appear in its own cell on 
the Assumption sheet).
Place your start-up costs on a third worksheet labeled "Startup Costs"
Create two additional worksheets for your recommendations. Label one worksheet
“Beer Recommendation”, label the other “Entertainment Recommendation”.
Appropriate Charts (graphs): You will be creating two separate charts so create and 
label two additional worksheets for the charts (each chart will be in its own 
worksheet).
Chart One –”Monthly Product Revenue” – this will show the monthly revenue 
for each of your five products for the entire year.2
Chart Two – “Total Product Net Income” - You want to track the total product net 
income for the year to determine any trends or projections in product sales.
Make sure both charts are formatted correctly (i.e. appropriate title, legend where 
appropriate, data series properly labeled) and they are appropriate for business use.
Information needed to complete assignment:
Calamari, Oysters, Fried shrimp, Catfish sandwiches, Salads, French fries, and sodas.
Product Selling Prices:
Oysters on half shell will sell for $8.25 each (dozen)
Fried Shrimp will sell for $10.25 (dozen)
Calamari will sell for $4.95 an order
Catfish Sandwich will sell for $5.95
Salads will sell for $4.50 each
Fries sell for $1.25 per order
Sodas sell for $1.25 a bottle
Cost of Goods Sold:
The Catfish sandwich ingredients (fried catfish, cheese, sauce, bun etc.)
cost $3.15 per sandwich. 
Calamari cost per order $1.90.
The fresh Shrimp cost $7.19 per order from the supplier.
Oysters (sauce, lemon, oysters) cost $5.19 per order.
Salad ingredients (lettuce, tomatoes, cheese, etc.) cost $1.23 per salad serving
Frozen fries and oil average to $.67 per order
Sodas cost about $.7 per 16 oz. bottle
The building rent is $2775 per month. 
Phone will cost about $220 per month. 
Electricity should cost about $775 a month. 
Insurance will be $850 a month.
Advertising and promotion will be $900 a month.
Operating Hours:
The diner will be open seven days a week.
The diner will serve lunch and dinner and will be open from 11am – 7pm on 
weekdays (Monday – Friday). It will need one hourly employee and an assistant 
manager (or manager) during these hours that the diner is open.
On Saturdays and Sundays the store will be open 11am – 11pm and will need two 
hourly employees and an assistant manager (or manger).
Your client will be the manager and draw a salary of $48,500 per year (includes 
benefits). He will also work in the store during the busiest times, and fill in for the 
assistant manager on days off and sick days. The assistant manager will receive a 3
salary of $37,500 per year (includes benefits). The hourly workers will be paid $7.25
an hour.
Monday through Fridays the owner expects an average of 17 customers an hour.
Saturdays and Sundays the owner expects an average of 38 customers an hour.
Demand Rate:
On average, 1/4 of all customer will buy shrimp, 1/4 of the customers will buy
oysters, 1/4 will buy Calamari, and 1/2 customers will buy Catfish, 3/4 of them will 
buy a salad, all of them buy french fries, and every customer will purchase a soda.
Start-up costs for the diner includes: 
Kitchen equipment: $16,250
Cash register and sales equipment: $1,250
Initial inventory: $5,500
Pre-opening marketing: $3,500
Diner fixtures (chairs, tables etc.): $4,500
Oil painting of your client’s momma to hang on the wall: $350
Licenses: $1,025
Security deposit: $6,500
First Insurance Payment: $850
Your client has $10,000 and plans to borrow the rest from the bank with a five-year 
loan at 5.1% interest. You are to calculate the monthly loan payment using the 
appropriate financial function.
Assume a tax rate of 23% if Income Before Taxes (IBT) is equal to or is greater than
$23,500. Assume a tax rate of 13% if IBT is less than $23,500. You are to calculate 
the monthly tax payment using the appropriate logical function.
Assume that sales will grow at an average of 2.25% per month. 
Assume that each month contains 4.2 weeks.
Scenario One: “What if” Analysis
Your client is unsure if he should sell beer at the diner. He thinks he can sell a beer 
to every second customer (except on Sundays when no beer can be sold) and it 
seems to be lucrative because the beer sells for $4.75 each and costs him only
$1.10 to purchase. Unfortunately your client is afraid that he would cannibalize his 
soft drink sales with the beer customers (one soft drink less for every beer sold). It 
will cost him $5,250 to purchase the beer license from the county and his monthly 
insurance costs would rise by another $275 per month.
What is your recommendation: Should your client offer beer to his 
customers?4
Scenario Two: “What if” Analysis
A former school friend of your client is an amateur Comedian and has planted the 
idea in your client’s head of adding a Comedy act to provide live entertainment on
the weekends (Saturday and Sunday). The friend states he can guarantee 7 more 
customers per hour if your client will hire him at $1,950 a month.
What is your recommendation: Would it be a profitable idea to hire the trio? 
Recommendations:
Show your client how these recommendations would affect the bottom line by 
recreating the pro forma for each scenario, and applying the data analysis to 
determine profitability.
You do not have to start from scratch, but note, these are completely independent 
pro formas. They must update accordingly from the data worksheets.
Plan on showing your analysis and discussing the proforma changes that occur 
under each new scenario and how it affects profitability.
Use a formatted text box (not a comment) to explain your recommendations 
under each new pro forma. This will be approximately a 2-3 paragraph endeavor.