Jake's Cakes (JC) Jake started baking cakes while at university. He baked cakes for friends' birthdays and other celebrations. He posted pictures of his cakes on social media sites where they received very positive feedback and were widely shared. In 2021 Jake started JC, a small business, using his parents' kitchen. JC bakes cakes and sells them online. Jake created a website where customers design and order unique 5 cakes. Jake uses digital promotion as the main method of promoting his products. JC has only used retained earnings to invest in marketing and new equipment. In 2023, Jake made a cake for a celebrity who shared JC's social media posts with their social media followers. As a result of this an investor approached Jake. The investor offered to provide a $$\(\$ 25000\)$$ capital investment to help Jake grow the business. However, Jake 10 does not want to take on an equal partner. Jake is considering a different plan for growth. His parents have agreed to let him convert their garage into his commercial kitchen. He has prepared a business plan and applied for a bank loan of $$\(\$ 15000\)$$ to finance this growth. He has produced a cash flow forecast for the first quarter of 2024. 15 20 25 Evaluate whether a bank loan is the most appropriate source of finance for JC's growth.

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