Fast Feet is a new specialty running shoe store in Lumberton, NC. Fast Feet star

Fast Feet is a new specialty running shoe store in Lumberton, NC. Fast Feet started off with a very good
first year, as it made a profit. 2022 is not looking as good, however, as increased supply prices and
utilities have driven up the COGS and a decrease in store traffic has sales numbers down considerably
from 2021.
Fast Feet does not have much of a seasonal swing, and with the store being new, there is no long-term
data by which forecasting can be done. However, sales are currently averaging $142,867.08 per month
through May 31, 2022. In that same time, the COGS has been $171,212.42.
Obviously, Fast Feet cannot continue this same course the rest of the year. You have been contracted at
a cost of $10,000 (administrative costs) to provide an analysis of what Fast Feet should do. The owner
has asked that you provide these scenarios:
1.
Project the Income Statement, Balance Sheet, and Statement of Cash Flows for 2022, should
nothing change but the numbers as reported in the second paragraph.
2.
Project the Income Statement, Balance Sheet, and Statement of Cash Flows for 2022, should
Fast Feet take on a marketing campaign that should increase sales, from the first five-month
average for 2022, by 21%. The campaign will cost Fast Feet $3,000 spread out over the last
seven months of the year.
3.
Project the Income Statement, Balance Sheet, and Statement of Cash Flows for 2022, should
Fast Feet take on a new product line that is very popular with runners right now. The product
will cost Fast Feet $164,000 in new inventory in 2022, but it should not increase COGS or S, G, &
A, and is forecasted to bring in 262,400.000 in new sales the rest of 2022. To fund this new
inventory, Fast Feet needs to choose one of these options: