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Jack and Jill are small business owners who run a hot dog stand licensedto operate outside a business shopping district. They have been so successfulthat they believe a second hot dog stand in the area also would be profitable.The capital expense to set it up would be $10,000 and they are consideringseveral options. Use a spreadsheet to evaluate these options by inserting(i) their receipts in column 1; (ii) expenses in column 2; (iii) change infinancial assets in column 3; and (iv) change in their debt in column 4. Statewhether they would be a surplus-budget unit or a deficit-budget unit undereach option.A.Their sales for the month turn out to be $12,000 and their expenses are$9,500; they borrow $10,000 for the new hot dog stand.B.Their sales for the month turn out to be $15,000 and their expenses $9,500;they sell $5,000 in stock and borrow the remaining funds needed to financethe new hot dog stand.C.Their sales for the month turn out to be $8,000 and their expenses are $9,500;they choose neither to borrow any funds nor build the second hot dog stand.D.Their sales for the month turn out to be $9,500 and their expenses also are$9,500; they use $5,000 in their bank account (with no other asset sales) tohelp finance the new hot dog stand.
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