Create pro-forma financial statements for first five years

Reference no: EM131456579

Assignment

Part One: Additional External Financing

You have been running your small business, Craft's Boat Shop, for several years now and have been very successful. You have come to the point where you expect sales to increase next year and want to be sure that you have enough assets available to support your sales. You also need to have the financing available to acquire those assets, if needed.

Craft's Boat Shop
Sales Last Year	$1,000,000
Assets at the End of Last Year	750,000
Accounts Payable	60,000
Notes Payable	60,000
Accruals	30,000
Profit Margin on Sales	5%
Dividend Payout	50%

Note: All figures are as of the end of last year

Required:

• If you need $0.80 in assets for every $1.00 in sales, by how much can sales increase without obtaining additional outside financing? HINT: Use the AFN formula.

Part Two: Business Plan

Required:

Continue working on your business plan. This week, you should create pro-forma financial statements for the first five years of operations. Document all your assumptions and support your use of the assumptions.

Reference no: EM131456579

Questions Cloud

Start saving for retirement : Liz has just paid off all her student loans and she is ready to start saving for retirement. She anticipates making withdrawals from account in each of year.

Identify the firms closest publicly-traded us competitor : Identify the firms closest publicly-traded U.S. competitor. This is the firm that is most similar in terms of the markets that it serves and is closest in size in terms of revenues and enterprise value.

Compute the price of ecology labs common stock : Ecology Labs Inc. will pay a dividend of $4.60 per share in the next 12 months (D1). Compute the price of Ecology Labs' common stock.

Initiating a cash discount : Gardner Company currently makes all sales on credit and offers no cash discount. The amount of cost that will be saved due to the reduction in average? A/R is

Create pro-forma financial statements for first five years : You should create pro-forma financial statements for the first five years of operations. Document all your assumptions and support your use of the assumptions.

Discuss strategies for providing helpful feedback : This essay serves as the next section of your Leadership Coaching Plan.Discuss strategies for providing helpful,balanced feedback.

American psychological association publication manual : You should review and utilize the American Psychological Association's Publication Manual, a required text for this course, as guidance for your submissions.

About the lockbox system : What amount of cash will be made available for other uses under the lockbox? system?

What is hr strategic planning to achieve the companys goal : What is HR strategic planning and strategies to achieve the organizational goals?What are the training programs needed to develop the employees?

User Account

All Pages