USB és ASSIGNMENT COVER PAGE stern 21> 28S3 | mzrionswmser O72 1 91 IST on 1D number for assignments submitted via e-mail FOR OFFICE USE‘food market stall setup in Cape Town I considering investing in a vehicle toexpose themselves toa new market as a mobile food truck, capable of serving thelr euerent product at outdoor events and sporting arenas. “Ther current market reach at permanent brick and mortar venues sited to poor market by entering tis adltionsl market space. vehicle that enables them to create @ mobile industrial chen, they are deliver 2 high-quality product to wine festivals, sport events and concertsin the Western Cape. ‘The food truck industry is global phenomenon, offering some ofthe highest quality street {00d experiences around the world. ust recently, the Frst Mi yet, critical feature that would ensue they get immediate marketshare as one polices. The key would be to establish a following as soon a possible to dive support at ‘The cash flow generated is based on two efferent scenarios, a worst case where units are R40 with a slow uptake anda best case where units are soldat AGO witha huge uptake, ‘Two operating cath flow studies were done using Seared'scurent costings and sales figures ‘mapped tothe capacity the mobliektchen would be abe to accomplish as can be seen in table 1 and tabe 2 respectively,Cash Flow Scenarios for Seared's Mobile Kitchen Option veora year? vous Years vous Ws case es ateajiet test cae: Seat apt Figure 1: Cash Flow Scenarios for Seared's Mobile Kitchen Option ‘© 400 Unit sales at average R6O/unit © R24 000/event + Offseaton event © 40 Unitsalesatnao/unt © R2000/event ‘Growth and exposure to new events wll occur aver the 5 yeee period, creating an 3s in events per month rice and expenses are modelled to increase at 10% annvally Wile the business does become profitable ater year 3, the sunk cost too great to recover through slow sales,Inthe best case scenario, with beter management of expenses and a quicker uptake 255 000 at 10.5%. the event management ofthe mobile kitchen to be operating on inders to ensue that events are booked, scheduled and managed to ensure thatthe operation sustains itself‘Table 1 Worst Case Senario Ch Flow Stady ‘Worst Cate: Depreciation schedule (Year) o 4 2 3 4 5 Market value “70000 “mz2000 “74000 0 epreciation 74000 sales R76 R aaiaoe A SID909 R Seeiae REHOME cos 220390 318870381356 aaS312,— TS 25, oye 98350 9885098880880 (8880 "depreciation" 74000 = 74000-74000 «74000» -74000 Taxcaleuated a 28% 19163 2735307732476 33873 depreciation -74000___-74000___-74000 76000-74000 operating cash flow BR 2a72a26 R 36EA7S A 2HET7 A 9sI00S A SIRT apex Rao 00000 25200000 LAND Working capital R R_-800000 R_-#000.00 R_-4000.00 R_-s00000 R_16000.00 totalcash low H -S7000000 A TETIG R_T6ETS A_AWaSS AS51008 A 7eII087 700% INPvat 1036 225022 ew 6.39%‘Table 2: Beat Cate Scenario Cash Flow Sty Best Case Depreciation schedule Market value depreciation sales cos om depreciation’ Tox calevated at 20% depreciation operating cashflow ° 1 2 3 4 5 “a7oo00 296000 232000148000 7000 ° 74000-74000 74000 4900-74000 Swen R618 R900 R SmOTIT R TOWNE 273029 «320438475517 «486632570806 98850 98850-98850 «98850. «8850 -74000 74000-74000» 74000-74000 et9ss 132907167523 agg 774 72698 74000-74000 __-74000___—-74000 74000 A 930346 Rh 7008193 A 1S907AG? A 16vasLOs A 17236854 capex -370000.00 252000.00 LAND Working capital R =f 400000 R_-400000 R_-400000 R_-4000.00 R_16000.00 total cash low 27000000 A QOOMED A GEOIST W ISSOTAGT A I60RLOS A AADIGESA om neva 105% 1 254812.25 ee 22.20%ane Tamale a Waa ogame Taran rarer iret asso al fone [eeateciemy [omen — [Uretereyeg [rein | mae rieaion | Beaneie | Bearetaran — Prpawanihe | Rapamnithe — | aaa once [Pepenctive |pupomerte | teogorateret|tedgondartet| b magma wth teagaunlaniat |cttemsigret [ofan | /"°) WA | adcyawelantet [ottoman arya | wert ded [Setar deh onion” enero eect. este! ne wey et rtd Nether, ove ae onmogy [Poweccean [awstrg [AMMO [ery |e (veo.‘Eorestig | Davonttes | Devontntiss | Snerdaet — | eyroarase | owas = stent seman | sta aaamtactn |store ilotine| cine | mnntene| opener | emrran? fereietye: [mora | anarmreet |revaenwy Smet |osotona’ |thermrintas, | mee Frown | wthaliadet oa crane. Sprang: | Beier aiial | Gadaiial | Uetasaniye — | Raa maae fe |Taisec!—|andynel | loaning, | lac wer ‘rarsss | roncge ery |v toy | they pad | eres ropeccawth |andpeadesers | nalintas | dpm tt | ahi rewaninge | indewimcrodt | orm ontracl weaning | tw trraonip | ragatonet te Federer | rent tnarden | tones asterertsuth | tht poy | datarete é aserets | erauacre | onapoeortecta targa | umsatatatey |) [sotaaty |andor tery |enaisors | alder al traieg eran etoingene | ered by (Stal eusins | tari reeecon wleto yt |e aye | Becoaret.